Wells Fargo analyst Ken Gawrelski maintained a Sell rating on Airbnb yesterday and set a price target of $111.00.
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Ken Gawrelski has given his Sell rating due to a combination of factors including concerns about Airbnb’s core lodging business and its ancillary services. Despite a slight increase in gross bookings and revenue growth projections for the second quarter of 2025, Gawrelski remains skeptical about the potential of Airbnb’s services and experiences businesses, viewing them as modest additions rather than significant growth drivers. Additionally, regulatory challenges, such as the order from Spanish authorities to remove non-compliant listings, pose potential risks to Airbnb’s supply and growth, especially during peak seasons.
Furthermore, while there is some growth in Airbnb’s daily active users outside the US, Canada, and Europe, the pace has slowed significantly compared to previous quarters. This slowdown raises concerns about the company’s ability to sustain its growth momentum in newer markets. Gawrelski also points out potential margin pressures due to increased product investments and limited expansion of the services and experiences supply, which could impact the company’s profitability in the second half of the year.