Cathie Wood’s ARK Investment Management made some notable moves on Monday, with the firm scooping up shares of Airbnb (ABNB) ahead of the travel company’s highly anticipated Q1 earnings report on May 1. Known for its bold investment strategies, ARK’s decision to increase its position in Airbnb comes at a critical moment. Here’s a closer look at this latest move by Wood’s ETFs and what analysts expects from Airbnb’s upcoming earnings.
ARK Invest Bets Big on Airbnb
On Monday, ARK acquired 60,068 shares of Airbnb valued at $7,358,930. Prior to this, ARK acquired a total of 80,361 Airbnb shares last week, representing a significant investment worth $8,969,091.
ARK’s continued buying spree in Airbnb shares suggests increasing conviction in the company’s long-term prospects, especially ahead of its Q1 earnings. This could signal to investors that ARK expects Airbnb to navigate near-term headwinds and deliver solid results or guidance.
What Analysts Expect from Airbnb’s Q1 Earnings
Wall street analysts expect Airbnb to report earnings per share (EPS) of $0.23 in Q1 2025, a notable drop from $0.41 in the same quarter last year. Revenue is projected at $2.26 billion, down from $2.5 billion in the previous quarter.
Overall, analysts remain cautiously optimistic about Airbnb due to ongoing macroeconomic uncertainties and concerns over potential tariff impacts that could affect current and future travel demand. On the brighter side, the company’s robust international footprint may help offset any softness in domestic bookings.
Canaccord Expects Mixed Q1 for Airbnb
Yesterday, five-star-rated analyst Michael Graham of Canaccord Genuity lowered his price target on ABNB from $190 to $180 while maintaining a Buy rating. Despite the target cut, his forecast still implies a potential 46% upside over the next 12 months.
Graham expects mixed Q1 results from Airbnb, citing a slowdown in gross bookings and revenue growth, down roughly 6% from the previous quarter. However, he still forecasts a 10–12% year-over-year revenue increase, in line with the 11.8% growth reported in Q4.
Is ABNB a Good Stock to Buy Now?
According to TipRanks, Wall Street has a Hold consensus rating on ABNB stock, based on 12 Buys, 19 Holds, and four Sell recommendations. The average ABNB stock price target of $151.47 implies a 23% upside potential.
Airbnb shares have fallen roughly 30% from a near 10-month high hit in mid-February.
