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Investing.com - Wells Fargo (NYSE:WFC) has lowered its price target on Airbnb Inc . (NASDAQ:ABNB) to $110.00 from $111.00 while maintaining an Underweight rating on the stock. The target sits well below the current trading price of $130.50 and analyst targets ranging from $96 to $200, with InvestingPro data showing the stock trading at elevated valuation multiples.
The firm cited slowing penetration gains in alternative accommodations in core markets as a key factor behind the adjustment, suggesting Airbnb faces challenges in its primary business segment.
Wells Fargo reduced its fiscal year 2025 and 2026 nights estimates by 40 and 30 basis points respectively, reflecting expectations for slower nights growth particularly in the fourth quarter of 2025. Revenue forecasts were also cut by 1.4% for FY25 and 2.5% for FY26 due to slightly lower take rates and average daily rates.
Despite these reductions, the firm maintained its FY25 adjusted EBITDA estimate at approximately $4.3 billion, representing a 35.6% margin compared to 35.0% previously. FY26 EBITDA projections were reduced by 2.3% to $4.68 billion.
Wells Fargo indicated it could become more constructive on Airbnb shares if the company aggressively adds hotel inventory to accelerate growth in its core accommodations business, but expressed skepticism that recent growth initiatives, including services and experiences launches, would significantly impact the company’s approximately $90 billion accommodations business.
In other recent news, Airbnb Inc. announced its second-quarter 2025 earnings, exceeding analysts’ expectations. The company reported an earnings per share (EPS) of $1.03, surpassing the forecasted $0.93, marking a 10.75% surprise. Additionally, Airbnb’s revenue reached $3.1 billion, which was higher than the projected $3.03 billion. Despite these strong financial results, Airbnb’s stock experienced a decline in premarket trading. The stock closed at $122.39, following a previous session close of $130.50. These developments reflect the latest updates for investors monitoring Airbnb’s performance.
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