Overview
DA Davidson lowered its price target on Airbnb Inc. (NASDAQ:ABNB) to $150 from $155 and kept a Buy rating on the shares following the company’s fourth-quarter results. Shares were trading around $125, up from the prior close of $115.96, though still noted as below InvestingPro’s Fair Value assessment.
Quarterly performance and margins
Airbnb’s most recent quarter produced a set of results that exceeded expectations, with management citing accelerating growth across multiple geographies. The company reported gross profit margins of 83% and revenue growth of 10.3% over the last twelve months, metrics that helped underpin the analyst support despite the adjusted price target.
Bookings and guidance
Operational signals showed strength as well: nights booked increased by 10%, a pace that outperformed Street expectations by 3.6%. Management’s forward-looking commentary pointed to continued acceleration, with first-quarter guidance targeting 15% growth at the midpoint and a full-year outlook calling for at least low-double-digit growth. Consensus estimates heading into the report had been 10.2%.
Analyst reactions and valuation considerations
DA Davidson described the fourth-quarter print as solid and reaffirmed its Buy stance, even as it trimmed the price target - a reduction the firm attributed to multiple compression rather than the underlying operating trend. Other brokerages reacted in varying ways: Deutsche Bank moved its rating from Hold to Buy and set a $154 price target, citing strong travel demand; Evercore ISI upgraded to Outperform, noting product improvements and a resilient quarter; Bernstein reiterated an Outperform rating while highlighting solid growth and higher gross bookings.
Not all revisions were upward. Cantor Fitzgerald lowered its price target to $121 while maintaining a Neutral rating, pointing to flat margins despite bookings and EBITDA beating estimates. The combination of upgrades, reiterations and downgrades creates a mixed analyst landscape that balances confidence in demand and product progress with caution on valuation and margin trends.
What this means for investors
The results and guidance present a picture of sustained demand and healthy profitability, but the disparate analyst responses underscore ongoing questions about valuation multiples and margin trajectory. Investors observing the stock’s move from the prior close to the trading level mentioned will need to weigh the company’s operating momentum against shifts in how the market values that momentum.
Note: The article reports analyst actions, company-reported metrics and market prices as stated above.