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ABNB expects third-quarter 2024 revenues between $3.67 billion and $3.73 billion, implying year-over-year growth of 8-10% on a reported basis.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $3.72 billion, indicating growth of 9.58% year over year.
The consensus mark for earnings is currently pegged at $2.17 per share, down by a penny over the past 30 days. The figure indicates a 9.21% decrease from the year-ago quarter’s reported figure.
ABNB’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the earnings surprise being 25.02%, on average.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let’s see how things are shaping up prior to this announcement.
Key Factors to Consider for ABNB’s Q3 Earnings
Airbnb is riding on its strong core business, strategic investments and expanding global footprint. Solid momentum in its marketplace, which connects hosts and guests online, and strong listings on its platform are helping it grow in urban and non-urban areas. It is worth mentioning that Airbnb has more than 7.7 million listings on its platform across 100,000 cities in almost every country and region globally. These factors are expected to have driven its third-quarter 2024 results.
Growing traction across non-urban areas and increasing demand for urban and cross-border travel are expected to have driven growth in its gross nights booked. The Zacks Consensus Estimate for Nights and Experiences Booked is pegged at 126 million, indicating a year-over-year increase of 9.6%.
ABNB’s strong efforts to strengthen its core services on the back of new features and upgrades are expected to have been other positives. A new feature called Guest Favorites, which is a collection of the most-loved homes on Airbnb based on ratings, reviews and reliability data, is expected to have driven momentum among various guests.
The introduction of a label feature to rank the top-listed properties of the company with a badge is noteworthy. It allows customers to see the top 25% and top 1% properties on the listing page, enabling them to choose wisely among a wide range of properties.
These features are expected to have contributed well to the gross booking value (GBV) in the third quarter. The Zacks Consensus Estimate for GBV is pegged at $21.3 billion, indicating growth of 11.5% from the reported figure in the year-ago quarter.
Airbnb’s initiative to expand use cases and support various kinds of services is likely to have driven its momentum among various hosts worldwide.
ABNB stock is not so cheap, as the Value Score of D suggests a stretched valuation at this moment.
In terms of the forward 12-month Price/Earnings ratio, ABNB is trading at 28.93X, higher than the sector’s 20.23X.
Price/Earnings Ratio (F12M)
Image Source: Zacks Investment Research
Rising Investments to Boost ABNB’s Top-Line Growth
Airbnb’s investments to grow the size and quality of the host community are noteworthy. The company is expanding use cases and supporting various kinds of hosts (the ones who share their homes with guests) to attract more hosts globally to its platform. The move will help hosts deliver high-quality stays and experiences for guests. Airbnb is also raising awareness around hosting to make it easier for hosts to get started.
Airbnb’s deepening focus on international expansion is a key catalyst. It is investing in under-penetrated or less mature international markets to unlock growth opportunities. It intends to continue investing in less mature markets throughout 2024 and beyond for further growth.
ABNB’s growing investments to strengthen its core services are tailwinds. It has added more than 430 features and upgrades to its core service to make its platform more reliable and affordable for guests.
These investments are expected to help Airbnb improve its competitive position against Booking Holdings (BKNG - Free Report) , Expedia (EXPE - Free Report) , TripAdvisor (TRIP - Free Report) and Trivago.
Shares of Booking Holdings and Expedia have outperformed Airbnb, while TRIP shares have underperformed. BKNG and EXPE shares have returned 33.8% and 5%, respectively, while TripAdvisor fell 25.1%.
Airbnb Shares - Buy, Sell or Hold?
Airbnb’s solid long-term prospects, owing to its strengthening host business, robust listings and expanding international footprint, present a compelling investment opportunity. However, stiff competition and stretched valuation are concerns.
Image: Shutterstock
Airbnb Set to Report Q3 Earnings: Buy, Sell or Hold the Stock?
Airbnb (ABNB - Free Report) is set to report its third-quarter 2024 results on Nov. 7.
ABNB expects third-quarter 2024 revenues between $3.67 billion and $3.73 billion, implying year-over-year growth of 8-10% on a reported basis.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $3.72 billion, indicating growth of 9.58% year over year.
The consensus mark for earnings is currently pegged at $2.17 per share, down by a penny over the past 30 days. The figure indicates a 9.21% decrease from the year-ago quarter’s reported figure.
ABNB’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the earnings surprise being 25.02%, on average.
Airbnb, Inc. Price and EPS Surprise
Airbnb, Inc. price-eps-surprise | Airbnb, Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let’s see how things are shaping up prior to this announcement.
Key Factors to Consider for ABNB’s Q3 Earnings
Airbnb is riding on its strong core business, strategic investments and expanding global footprint. Solid momentum in its marketplace, which connects hosts and guests online, and strong listings on its platform are helping it grow in urban and non-urban areas. It is worth mentioning that Airbnb has more than 7.7 million listings on its platform across 100,000 cities in almost every country and region globally. These factors are expected to have driven its third-quarter 2024 results.
Growing traction across non-urban areas and increasing demand for urban and cross-border travel are expected to have driven growth in its gross nights booked. The Zacks Consensus Estimate for Nights and Experiences Booked is pegged at 126 million, indicating a year-over-year increase of 9.6%.
ABNB’s strong efforts to strengthen its core services on the back of new features and upgrades are expected to have been other positives. A new feature called Guest Favorites, which is a collection of the most-loved homes on Airbnb based on ratings, reviews and reliability data, is expected to have driven momentum among various guests.
The introduction of a label feature to rank the top-listed properties of the company with a badge is noteworthy. It allows customers to see the top 25% and top 1% properties on the listing page, enabling them to choose wisely among a wide range of properties.
These features are expected to have contributed well to the gross booking value (GBV) in the third quarter. The Zacks Consensus Estimate for GBV is pegged at $21.3 billion, indicating growth of 11.5% from the reported figure in the year-ago quarter.
Airbnb’s initiative to expand use cases and support various kinds of services is likely to have driven its momentum among various hosts worldwide.
ABNB Shares Underperform Sector, Industry
Airbnb shares have returned 0.2%, underperforming the Zacks Consumer Discretionary sector’s return of 5.3% and the Zacks Leisure and Recreation Services industry’s 11.4%.
Year-to-Date Performance Chart
Image Source: Zacks Investment Research
ABNB stock is not so cheap, as the Value Score of D suggests a stretched valuation at this moment.
In terms of the forward 12-month Price/Earnings ratio, ABNB is trading at 28.93X, higher than the sector’s 20.23X.
Price/Earnings Ratio (F12M)
Image Source: Zacks Investment Research
Rising Investments to Boost ABNB’s Top-Line Growth
Airbnb’s investments to grow the size and quality of the host community are noteworthy. The company is expanding use cases and supporting various kinds of hosts (the ones who share their homes with guests) to attract more hosts globally to its platform. The move will help hosts deliver high-quality stays and experiences for guests. Airbnb is also raising awareness around hosting to make it easier for hosts to get started.
Airbnb’s deepening focus on international expansion is a key catalyst. It is investing in under-penetrated or less mature international markets to unlock growth opportunities. It intends to continue investing in less mature markets throughout 2024 and beyond for further growth.
ABNB’s growing investments to strengthen its core services are tailwinds. It has added more than 430 features and upgrades to its core service to make its platform more reliable and affordable for guests.
These investments are expected to help Airbnb improve its competitive position against Booking Holdings (BKNG - Free Report) , Expedia (EXPE - Free Report) , TripAdvisor (TRIP - Free Report) and Trivago.
Shares of Booking Holdings and Expedia have outperformed Airbnb, while TRIP shares have underperformed. BKNG and EXPE shares have returned 33.8% and 5%, respectively, while TripAdvisor fell 25.1%.
Airbnb Shares - Buy, Sell or Hold?
Airbnb’s solid long-term prospects, owing to its strengthening host business, robust listings and expanding international footprint, present a compelling investment opportunity. However, stiff competition and stretched valuation are concerns.
Currently, Airbnb carries a Zacks Rank #3 (Hold), which implies that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.