Benchmark has revised its price target for Airbnb (ABNB, Financial) to $155, down from the previous target of $178, while retaining a Buy rating on the stock. The recent quarterly performance and guidance from Airbnb met the firm's expectations. However, according to the analyst, the period ahead holds significant potential. Despite anticipating some fluctuations, the prospects for growth acceleration and an improved catalyst roadmap appear more promising in the coming years. These developments suggest positive momentum for Airbnb's future trajectory.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 32 analysts, the average target price for Airbnb Inc (ABNB, Financial) is $147.55 with a high estimate of $200.00 and a low estimate of $95.00. The average target implies an upside of 18.98% from the current price of $124.01. More detailed estimate data can be found on the Airbnb Inc (ABNB) Forecast page.
Based on the consensus recommendation from 46 brokerage firms, Airbnb Inc's (ABNB, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Airbnb Inc (ABNB, Financial) in one year is $189.13, suggesting a upside of 52.51% from the current price of $124.01. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Airbnb Inc (ABNB) Summary page.
ABNB Key Business Developments
Release Date: May 01, 2025
- Revenue: $2.3 billion, up 6% year-over-year.
- Nights and Experiences Booked: 143 million, up 8% year-over-year.
- Adjusted EBITDA: $417 million, representing an 18% margin.
- Free Cash Flow: $1.8 billion in Q1; $4.4 billion over the past 12 months, with a 39% margin.
- Corporate Cash and Investments: $11.5 billion at the end of Q1.
- Stock Repurchase: $807 million of common stock repurchased during the quarter.
- Q2 Revenue Outlook: Expected between $2.99 billion to $3.05 billion, representing 9% to 11% year-over-year growth.
- Adjusted EBITDA Margin Outlook: Expected to be flat to slightly down compared to Q2 2024.
- Full Year Adjusted EBITDA Margin Outlook: At least 34.5%, including $200 million to $250 million investment in new businesses.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Airbnb Inc (ABNB, Financial) reported a strong start to 2025 with guests spending nearly $25 billion in Q1.
- The company achieved 143 million Nights and Experiences Booked, marking an 8% year-over-year increase.
- Revenue for Q1 was $2.3 billion, up 6% year-over-year, with a potential 11% growth excluding FX and calendar factors.
- Airbnb Inc (ABNB) generated $417 million of adjusted EBITDA, representing an 18% margin.
- The company continues to generate significant cash, delivering $1.8 billion of free cash flow in Q1, with a strong balance sheet holding $11.5 billion in corporate cash and investments.
Negative Points
- Growth in North America was the slowest among regions, with low single-digit increases.
- The US market showed relatively softer trends, attributed to broader economic uncertainty.
- Airbnb Inc (ABNB) expects adjusted EBITDA margin to be flat to slightly down in Q2 compared to the previous year.
- Marketing expenses are projected to grow faster than revenue in Q2 due to investments in growth initiatives.
- There is a noted decline in the popularity of foreign travelers coming to the US, impacting certain travel corridors.
