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Here's Why Airbnb, Inc. (ABNB) Fell More Than Broader Market

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In the latest market close, Airbnb, Inc. (ABNB - Free Report) reached $160.28, with a -1.46% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.95%. Elsewhere, the Dow lost 1.09%, while the tech-heavy Nasdaq lost 0.84%.

The company's shares have seen a decrease of 2.41% over the last month, not keeping up with the Computer and Technology sector's gain of 1.67% and the S&P 500's gain of 1.78%.

The investment community will be closely monitoring the performance of Airbnb, Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.29, marking a 61.11% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.06 billion, up 13.47% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.63 per share and a revenue of $11.08 billion, representing changes of -36.05% and +11.72%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Airbnb, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.59% lower within the past month. Right now, Airbnb, Inc. possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Airbnb, Inc. is currently being traded at a Forward P/E ratio of 35.1. Its industry sports an average Forward P/E of 19.83, so one might conclude that Airbnb, Inc. is trading at a premium comparatively.

Also, we should mention that ABNB has a PEG ratio of 2.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Content industry stood at 1.64 at the close of the market yesterday.

The Internet - Content industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 37% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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