ABNB - Airbnb (ABNB) earnings preview and stock forecast
2024-05-03 15:04:45 ET
Airbnb (NASDAQ: ABNB) stock price has gone nowhere in the past few weeks. After jumping to a high of $169.85 in March, it has tumbled by about 5.8% as the focus shifts to the upcoming financial results. It has been one of the best-performing travel stocks as it jumped by almost 95% from its lowest point in 2023.
Airbnb earnings preview
Next week will be an important week for American stocks as hundreds of S&P 500 index companies are set to publish their financial results. The most notable names are firms like Uber, Disney, Ferrari, Realty Income , and Toyota.
Airbnb will be one of the top companies to watch next week as it publishes its financial results on Wednesday. These results will come a week after Booking Holdings and Expedia published mixed financial results.
Booking Holding had a strong quarter as its bookings and profits rose. Expedia, on the other hand, had a weak quarter, leading to a sharp decline of 14% on Friday. The company attributed this drop to the softness of its vocational rental division.
Analysts expect Airbnb’s results to show that the company continued doing well in the first quarter. Revenue is expected to come in at $2.06 billion, a 13% increase from the same period in 2023.
The average estimate for its second-quarter revenue will be $2.74 billion, a 13% increase from the same quarter last year. Analysts expect the company’s revenue will jump to $11.1 billion and $12.42 billion in 2024 and 2025.
These are strong numbers for a company that has been growing in the past few years. Its annual revenue stood at $3.37 billion in 2020. Notably, Airbnb has become a highly profitable company. Its annual revenue rose to $4.7 billion in 2023 from a $4.5 billion loss in 2020.
The most recent results showed that Airbnb’s gross booking value (GBV) rose to over $15.5 billion in Q4 and $73.3 billion in 2023.
That happened as the company boosted its services in underpenetrated countries like Germany, Brazil, and South Korea. It has now started growing its business to countries like Switzerland, Belgium, and the Netherlands.
Airbnb has started to repurchase its stock in a move to lower its share count and boost its earnings per share. It launched a $2 billion program, which is a positive move.
Still, there are concerns about the company’s growth. While global travel is booming, there are signs that the pace of growth is starting to moderate.
Airbnb stock price forecast
The daily chart shows that the ABNB share price has been in a strong bullish trend in the past few months. It has rebounded from a low of $82.77 in December 2022 to about $160. The stock has formed an ascending channel.
It is consolidating at the 50-day and 25-day Exponential Moving Averages (EMA) and is between the 50% and 61.8% Fibonacci Retracement level. It sits slightly above the key support at $154.85, its highest swing in July 2023.
The Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have formed a bearish divergence pattern. Therefore, the outlook for the stock is neutral with a bearish bias. If this happens, the next point to watch will be at $140. On the other hand, a bullish move above $169.85 will point to more upside.
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