Airbnb (ABNB) stock soared out of the gate Friday after the travel booking and rental platform beat top- and bottom-line expectations for its fourth quarter.
In the three months ending December 31, Airbnb's revenue increased 11.8% year over year to $2.5 billion, boosted by a 12.3% increase in nights and experiences booked to 111 million. It also swung to a net profit of 73 cents per share from a loss of 55 cents per share in the year-ago period.
"Nights growth accelerated in Q4 compared to Q3—resulting in the highest-growth quarter of the year," Airbnb said in a statement announcing its results. "Airbnb is a fundamentally stronger company today than it was several years ago."
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The results topped analysts' expectations. Wall Street was anticipating revenue of $2.4 billion and earnings of 58 cents per share, according to CNBC.
Airbnb also said gross booking value (GBV) increased 13.5% year over year to $17.6 billion, while GBV per night and experience booked increased 0.9% to $158.13.
For its first quarter, Airbnb said it expects to achieve revenue in the range of $2.23 billion to $2.27 billion, representing growth of 4% to 6% from the year-ago period. The midpoint, $2.25 billion, came up short of analysts' expectations of $2.3 billion.
Management noted in its statement that since ABNB's initial public offering in 2020 revenue and GBV have tripled, adding as well that last year Airbnb "outpaced the travel industry's growth."
Airbnb said it continues "to build on this momentum in 2025" as it executes "a multi-year strategy to perfect the core service, accelerate growth in global markets, and launch and scale new offerings."
Is Airbnb stock a buy, sell or hold?
Airbnb stock has lagged the S&P 500 over the trailing 12 months, bogged down most recently after it reported mixed third-quarter results and offered a soft outlook. And Wall Street is on the sidelines when it comes to the consumer discretionary stock.
According to S&P Global Market Intelligence, the average analyst target price for ABNB stock is $150.31, representing a discount of more than 6% to current levels. Meanwhile, the consensus recommendation is Hold.
Financial services firm B. Riley Securities maintained its Neutral rating (equivalent to a Hold) but raised its price target on ABNB stock to $145 from $131 following the earnings beat.
"Airbnb reported solid 4Q results, with bookings, revenue, and EBITDA coming in ahead of expectations, driven by strength in booked nights," B. Riley Securities analyst Naved Khan writes in a post-earnings update.
The travel stock is trading at 18.4 times 2025 adjusted EBITDA and 34.1 times price-to-earnings, Khan notes. "We continue to find the risk/reward balanced and opt to stay on the sidelines."
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