With a market cap of $77.6 billion, Airbnb, Inc. (ABNB) operates a global platform that connects hosts and guests to book accommodations and experiences through its website and mobile app. The platform offers a wide range of options, from private rooms to luxury villas, and also provides gift cards.

Shares of the San Francisco, California-based company have underperformed the broader market over the past 52 weeks. ABNB has declined 21.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 8.6%. Moreover, shares of ABNB are down 5.3% on a YTD basis, compared to SPX’s 4.3% decrease.

Focusing more closely, the travel booking platform has lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 13.4% return over the past 52 weeks. 

Although Q1 2025 adjusted earnings per share dropped 41% to $0.24 on May 1, shares of Airbnb rose over 1% the following day, driven by a 6% revenue increase to $2.3 billion, surpassing expectations, and solid growth in gross bookings and nights booked. Additionally, despite a slight dip in earnings, Airbnb's solid growth in nights/experiences booked (+8%) and resilience in North America, Latin America, and Asia-Pacific markets helped offset weaker Q2 guidance.

For the current fiscal year, ending in December 2025, analysts expect ABNB’s adjusted EPS to grow nearly 2% year-over-year to $4.19. The company's earnings surprise history is mixed. It beat the consensus estimates in one of the last four quarters while missing on three other occasions.

Among the 39 analysts covering the stock, the consensus rating is a “Hold.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” 22 “Holds,” one “Moderate Sell,” and four “Strong Sells.”

This configuration is more bullish than three months ago, with nine “Strong Buy” ratings on the stock.

On May 5, DA Davidson reaffirmed a “Buy” rating and $155 price target on Airbnb, citing strong adjusted EBITDA and stable FX-neutral gross bookings and revenue growth despite slightly weaker unit growth in Q1 2025.

As of writing, ABNB is trading below the mean price target of $140.54. The Street-high price target of $200 implies a potential upside of 62.4% from the current price levels.