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Airbnb, Inc. (ABNB) Falls More Steeply Than Broader Market: What Investors Need to Know

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Airbnb, Inc. (ABNB - Free Report) closed at $145.97 in the latest trading session, marking a -0.09% move from the prior day. This change lagged the S&P 500's 0.04% loss on the day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.12%.

The company's stock has dropped by 0.74% in the past month, exceeding the Computer and Technology sector's loss of 2.27% and lagging the S&P 500's gain of 4.15%.

The investment community will be closely monitoring the performance of Airbnb, Inc. in its forthcoming earnings report. In that report, analysts expect Airbnb, Inc. to post earnings of $0.91 per share. This would mark a year-over-year decline of 7.14%. Our most recent consensus estimate is calling for quarterly revenue of $2.74 billion, up 10.29% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.67 per share and a revenue of $11.24 billion, indicating changes of -35.5% and +13.37%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Airbnb, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% upward. Right now, Airbnb, Inc. possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Airbnb, Inc. is holding a Forward P/E ratio of 31.27. For comparison, its industry has an average Forward P/E of 20.23, which means Airbnb, Inc. is trading at a premium to the group.

It is also worth noting that ABNB currently has a PEG ratio of 1.8. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Content industry stood at 1.51 at the close of the market yesterday.

The Internet - Content industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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