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Valued at a market cap of $88.2 billion, Airbnb, Inc. (ABNB) operates a platform that enables hosts to offer stays and experiences to guests worldwide. The San Francisco, California-based company’s marketplace connects hosts and guests online to book spaces and experiences and primarily offers private rooms, primary homes, and vacation homes.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and Airbnb fits right into that category. The company has over 7.7 million listings worldwide in over 220 countries and regions and connects people who want to rent out their homes with people looking for short-term or long-term accommodations.
ABNB is currently trading 19.8% below its 52-week high of $170.10, reached on Mar. 21. Shares of this vacation rental company gained 17.4% over the past three months, significantly lagging behind the Direxion Daily Travel & Vacation Bull 2X Shares’(OOTO) whopping 65.5% gains during the same time frame.
Moreover, in the longer term, ABNB has marginally increased on a YTD basis, significantly underperforming OOTO’s 48.5% returns. Shares of ABNB are up nearly 2% over the past 52 weeks, massively lagging behind OOTO’s 73.5% rise over the same time frame.
To confirm its bearish trend, ABNB has been trading below its 200-day moving average since early November. However, it has remained above its 50-day moving average since mid-September.
Shares of ABNB plunged 8.7% following its mixed Q3 earnings release on Nov. 7. The company’s revenue increased 10% year-over-year to $3.73 billion and slightly surpassed the forecasted figure of $3.72 billion. However, its adjusted EPS declined significantly by 67.9% annually to $2.13 and slightly missed the consensus estimates of $2.14 per share. Noted margin compression in the quarter coupled with regulatory challenges faced by the company in key markets like New York City might have contributed to its downward price trend.
ABNB’s underperformance becomes more evident when compared to its rival, Booking Holdings Inc. (BKNG), which soared 68% over the past 52 weeks and 49.1% on a YTD basis.
Given ABNB’s underperformance relative to its industry peers, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from the 38 analysts covering it, and the mean price target of $138.65 suggests a slight 1.7% premium to its current levels.
