FPX - Airbnb Faces Growth Hurdles Despite Strong Consumer Preference Analysts Warn | Benzinga
Airbnb Inc (NASDAQ:ABNB) shares are trading lower after Needham analyst Bernie McTernan downgraded the stock from Buy to Hold.
The market has an overly optimistic view of Airbnb’s potential to leverage artificial intelligence (AI) to disrupt the global online travel agency (OTA) industry, McTernan says.
The analyst projected first-quarter revenue and EPS of $2.05 billion and $0.73.
Airbnb CEO Brian Chesky spoke on a February earnings call about expanding beyond the company’s core business.
McTernan inferred this as AI-enabled OTA, where consumers could book an entire trip, not just a short-term rental. This makes a lot of sense, as it leverages Airbnb’s scale. Consumers will likely come to the platform earlier in the booking journey. Plus, the emergence of generative AI can provide a differentiated product.
However, he also flagged that the shift is coming at a time when Airbnb growth is slowing and converging with Booking Holdings Inc (NASDAQ:BKNG) and Expedia Group, Inc (NASDAQ:EXPE) after ...