Airbnb (ABNB) stock surged after the company reported strong fourth-quarter earnings and sales, beating analyst expectations. In its December quarter, Airbnb earned 73 cents per share on $2.48 billion in sales, surpassing forecasts of 58 cents per share on $2.42 billion.
The San Francisco-based tech firm saw a notable acceleration in first-time bookers and global growth, with Asia Pacific and Latin America driving the increase. Gross bookings on its platform grew 13% to $17.6 billion, exceeding analyst estimates of $17.2 billion.
Airbnb also swung back into profit after a loss in Q4 2023 due to one-time tax-related expenses. The company now expects sales of $2.25 billion for the current quarter, slightly lower than analysts’ forecast of $2.3 billion.
Despite this, investors are optimistic about Airbnb’s future, pushing its stock price up more than 13% in after-hours trading. This represents a significant turnaround from its performance over the past year, which has seen a 7% decline.
Airbnb’s growth has been steadily declining since the “revenge travel” boom that began in 2022, but the company remains a top performer according to IBD’s Composite Rating of 65 and Relative Strength Rating of 63 out of 99.
Source: https://www.investors.com/news/technology/airbnb-earnings-on-deck-here-are-the-numbers-to-watch