tiprankstipranks
Airbnb (NASDAQ: ABNB) Dips as CEO Acknowledges Challenges
Market News

Airbnb (NASDAQ: ABNB) Dips as CEO Acknowledges Challenges

Story Highlights

Airbnb dips in trading as the company’s founder and CEO, Brian Chesky acknowledged the challenges ahead.

The online marketplace for homestays and experiences, Airbnb (NASDAQ: ABNB) slumped in trading on Tuesday after Airbnb’s Founder and CEO, Brian Chesky acknowledged the challenges ahead for the company in an interview with Bloomberg. Even as the company rolled out improvements to its website, it has been battling complaints from both guests and hosts.

Don't Miss our Black Friday Offers:

While hosts on the platform are worried about low bookings and their profits, guests are feeling that they will get a better experience at a hotel and it will work out cheaper, too. Chesky admitted in his interview with Bloomberg, “We need to get our house in order. We need to make sure the listings are great, we’re providing great customer service and we’re affordable. And I’ve told our team that we can get back to creating new and exciting things once we’ve fixed that foundation.”

Chesky pointed out that while Airbnb hosts remained concerned about their bottom line, the house rentals still needed to be affordable. He stated, “The more affordable Airbnbs are, the more bookings we get.” The CEO added that the prices of house rentals on Airbnb needed to be more competitive than hotels.

What is the Target Stock Price for ABNB?

Even top-rated KeyBanc analyst Justin Patterson remained concerned about the company’s near-term margin levels and the potential deceleration of revenue growth. As a result, the analyst downgraded the stock to a Hold from a Buy. The analyst also lowered his estimates for 2024 and 2025 EBIDTA figures and expects more modest booking growth in the future. Patterson’s downgrade suggests a more cautious outlook on the company’s growth prospects.

Overall, Wall Street analysts are cautiously optimistic about ABNB stock with a Moderate Buy consensus rating based on 12 Buys, 16 Holds, and three Sells. The analysts have a consensus price target of $149.80, implying an upside potential of 14.2% at current levels.

Related Articles
TheFlyAirbnb call volume above normal and directionally bullish
Nikolaos SismanisBooking Stock (NASDAQ:BKNG) Hits $5000 – Will the Bullish Momentum Continue?
Shrilekha PetheAirbnb (NASDAQ:ABNB) Urges Barcelona to Rethink Plan to Shut Down Short-Term Rentals
Go Ad-Free with Our App