Accommodation renting company Airbnb (NASDAQ:ABNB) recently reported upbeat first-quarter results, with both sales and earnings surpassing analysts’ expectations. Interestingly, the company’s performance would not have surprised users who closely monitored the company’s website traffic using TipRanks’ Website Traffic Tool.
The tool helps enhance stock research by providing data about the performance of a company’s website domain. This information can be used to predict the upcoming earnings report, as a growth in online usage may point to higher sales in the concerned period.
Learn how Website Traffic can help you research your favorite stocks.
Website Traffic Showed Uptrend
Ahead of the company’s Q1 results, the tool showed that website traffic for airbnb.com witnessed a 61.62% year-over-year increase in total estimated visits. Moreover, it was up about 21% sequentially. The increase in website traffic already pointed to a solid top-line performance.
Interestingly, Airbnb reported revenues of $2.14 billion, up 18% from the year-ago quarter. Also, it surpassed the average consensus estimate of $2.06 billion. The company’s top-line growth was primarily attributable to strong growth in Nights and Experiences Booked, favorable foreign exchange, and a shift in the Easter holiday to Q1.
Is Airbnb a Buy or Sell?
The company’s focus on improving its platform and its efforts to expand globally are encouraging. However, analysts remain sidelined due to the expected rise in product development expenses and marketing costs.
Airbnb has a Hold consensus rating based on seven Buy, 22 Hold, and five Sell ratings. The analysts’ average price target on ABNB stock of $152.82 implies a limited upside potential of 2.5%. Airbnb stock has gained nearly 41% in the past year, outperforming the Nasdaq 100 Index (NDX) rally of about 35%.