Airbnb (ABNB), a global vacation rental platform, will release its Q3 financial results on November 7. Wall Street analysts expect the company to report earnings per share of $2.14, reflecting a 9.2% year-over-year decline. However, revenue is expected to reach $3.72 billion, marking a 9.7% year-over-year increase, according to data from the TipRanks Forecast page.
Many analysts expect Airbnb’s earnings growth to come under pressure in the near term due to higher marketing expenses and slower booking growth. Interestingly, Airbnb has missed earnings estimates twice in the last five quarters.
Encouraging Website Traffic Trend
While analysts anticipate a decline in earnings, they expect Q3 revenues to show growth compared to the same period last year. ABNB’s website traffic data also points to potential top-line growth for Q3. It’s important to highlight that TipRanks’ Website Traffic Tool helps to gain insights into a company’s earnings potential by tracking its website domain performance over a specific time frame.
For ABNB, the tool reveals a 20.46% year-over-year increase in visits to airbnb.com in Q3.
Key Takeaways from TipRanks’ Bulls & Bears Tool
According to TipRanks’ Bulls Say, Bears Say tool, bullish analysts believe Airbnb’s strong network reinforces its position as a prominent vacation rental marketplace. They see growth potential in the urban hotel market and note that Airbnb’s listings rose 20% year-over-year in September, reflecting steady supply growth across its platform.
Conversely, bearish analysts warn that Airbnb’s financial performance could be impacted by a macroeconomic slowdown, reducing travel spending and booking rates. They also believe that growing competition and regulatory challenges could limit short-term rentals.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting an 8.71% move in either direction.
Is It Good to Buy Airbnb Stock?
Turning to Wall Street, analysts have a Hold consensus rating on ABNB stock based on eight Buys, 23 Holds, and six Sells assigned in the past three months, as indicated by the graphic below. The average ABNB stock price target is $125.83, implying downside potential of 8.7%.
