Airbnb Stock Jumps Ahead Of Fourth-Quarter Earnings

Airbnb (ABNB) reports fourth-quarter results late Tuesday amid a broad rally in travel stocks. Airbnb stock was surging.

Among other travel stocks Tuesday, Expedia (EXPE), Marriott International (MAR), Hyatt Hotels (H) and Booking Holdings (BKNG) were all up.

Marriott reported better-than-expected fourth-quarter results on Tuesday, kicking off a slew of hotel results this week. The Covid omicron variant weighed on travel in the latest quarter, but hotel stocks have been rallying as cases fall and mask mandates wane.

Analysts expect Airbnb to report adjusted earnings of 4 cents a share, vs. a 58-cent loss in the year ago period. They see Airbnb revenue soaring 70% to $1.45 billion, according to FactSet.

Airbnb Stock Jumps Along With Expedia

Airbnb stock jumped 5.1% to 178.38 during afternoon trading on the stock market today. The company facilitates extended stays at residences by connecting owners with renters.

Meanwhile, online travel booking giant Expedia stock bounded 6.1% higher to 209.25. Expedia reported fourth-quarter results on Friday that soundly beat Wall Street estimates. Its brands include Hotels.com, Vrbo, Orbitz and Travelocity. The company is an IBD Leaderboard stock.

Another online travel company, Booking Holdings, reports fourth-quarter results after the market close on Feb. 23. Its shares climbed 3.5% to 2,633.67 in afternoon trading Tuesday.

Harsh Covid Effects On Travel

Travel has been one of the earliest and most harshly affected sectors in the coronavirus pandemic. Staffing shortages at airlines and the extremely high infection rate of omicron discouraged some travel. Yet, overall, quarantine requirements are loosening in many countries.

“We expect Airbnb’s 4Q results will show continued profitability progress,” KeyBanc Capital Markets analyst Justin Patterson wrote in a note to clients. “While we believe there is some risk to near-term bookings growth from omicron headwinds, we believe pent-up demand for US and international travel can lead to further revenue and EBITDA upside in 2022.”

Patterson has an overweight rating on Airbnb stock and a price target of 194.

Jefferies analyst John Colantuoni has a buy rating on Airbnb and a price target of $220.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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