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Airbnb, Inc. (ABNB) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Airbnb, Inc. (ABNB - Free Report) closed at $147.60, marking a -1.96% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.57%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 1.25%.

The company's shares have seen an increase of 7.95% over the last month, not keeping up with the Computer and Technology sector's gain of 10.16% and outstripping the S&P 500's gain of 5.07%.

Investors will be eagerly watching for the performance of Airbnb, Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 13, 2024. The company is expected to report EPS of $0.67, up 39.58% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.16 billion, showing a 13.7% escalation compared to the year-ago quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Airbnb, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.25% increase. As of now, Airbnb, Inc. holds a Zacks Rank of #2 (Buy).

In terms of valuation, Airbnb, Inc. is presently being traded at a Forward P/E ratio of 34.02. This represents a premium compared to its industry's average Forward P/E of 15.95.

It's also important to note that ABNB currently trades at a PEG ratio of 2.12. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Content industry stood at 1.08 at the close of the market yesterday.

The Internet - Content industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 103, finds itself in the top 41% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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