Is Airbnb Stock Underperforming the S&P 500?

Airbnb, Inc. (ABNB), headquartered in San Francisco, California, operates a platform that enables hosts to offer stays and experiences to guests. Valued at $83.1 billion by market cap, the company offers lodging, homestay, and tourism services via websites and mobile applications.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and ABNB perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the travel services industry. ABNB is a leading player in the travel sector, offering 7.7 million unique accommodation listings worldwide. ABNB has disrupted traditional hospitality models with its innovative platform, catering to travelers seeking personalized and authentic experiences.

Despite its notable strength, ABNB slipped 6.4% from its 52-week high of $147.25, achieved on Apr. 22. Over the past three months, ABNB stock gained 2%, underperforming the S&P 500 Index’s ($SPX) 10.4% gains during the same time frame.

Shares of ABNB rose 1.6% on a YTD basis and climbed 6.9% over the past 52 weeks, underperforming SPX’s 11% gains on a YTD basis and 28% returns over the last year.

To confirm the bullish trend, ABNB has been trading above its 50-day and 200-day moving averages since mid-April, with some fluctuations. 

On May 7, ABNB shares closed up marginally after reporting its Q1 results. Its revenue stood at $2.7 billion, up 17.9% year over year. The company’s EPS increased 8.3% from the year-ago quarter to $0.26.

In the competitive arena of travel services, Booking Holdings Inc. (BKNG) has lagged behind ABNB, with a 21% downtick on a YTD basis and 23.3% losses over the past 52 weeks.

Wall Street analysts are reasonably bullish on ABNB’s prospects. The stock has a consensus “Moderate Buy” rating from the 40 analysts covering it, and the mean price target of $157.94 suggests a potential upside of 14.6% from current price levels.