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Investing.com - JPMorgan raised its price target on Airbnb Inc . (NASDAQ:ABNB) to $130.00 from $120.00 on Thursday, while maintaining a Neutral rating on the stock. According to InvestingPro data, the stock currently trades at $122.50, with analyst targets ranging from $96 to $200. The company maintains impressive gross profit margins of 83.2% and holds more cash than debt on its balance sheet.
The price target increase follows Airbnb’s second-quarter results and outlook, which JPMorgan described as "largely in-line with investor expectations." The firm noted encouraging early progress in Airbnb’s expansion beyond its core business, with bookings accelerating from April through July despite initial softness at the start of the quarter. InvestingPro analysis indicates the company’s financial health is rated as GOOD, with strong profitability metrics including a return on equity of 33%.
JPMorgan highlighted Airbnb’s May "Summer Release" launch of new Services, Experiences, and a redesigned mobile app, which are showing "early momentum with growing awareness, positive feedback from guests, and strong interest from hosts." While these initiatives aren’t expected to significantly contribute to 2025 revenue growth, the firm views Airbnb’s ability to launch and scale new businesses as crucial for long-term growth.
Airbnb maintained its 2025 adjusted EBITDA margin floor guidance of 34.5%, which JPMorgan believes "could prove conservative," as the company plans to invest $200 million toward new businesses, down from a previous range of $200-250 million.
The firm’s new December 2026 price target of $130 is based on approximately 22 times JPMorgan’s 2027 estimated GAAP earnings per share, with the analyst noting that tough second-half 2025 comparisons, growth investments pressuring margins, and execution risks for new businesses factored into maintaining the Neutral rating. InvestingPro analysis suggests the stock is currently undervalued relative to its Fair Value, with 10+ additional exclusive insights available to subscribers, including detailed valuation metrics and growth forecasts.
In other recent news, Airbnb Inc. reported its second-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $1.03, compared to the forecasted $0.93. The company’s revenue reached $3.1 billion, exceeding the projected $3.03 billion. Despite these positive financial results, Airbnb faces some challenges, as highlighted by Wells Fargo (NYSE:WFC), which lowered its price target to $110 due to slower growth in core markets. UBS also adjusted its price target to $148, citing growth concerns as Airbnb’s growth in Nights and Seats lagged behind its competitor Booking (NASDAQ:BKNG). Meanwhile, BMO Capital raised its price target to $124, acknowledging Airbnb’s solid second-quarter performance, where revenue and adjusted EBITDA exceeded consensus estimates. Bernstein maintained an Outperform rating, with a $165 target, noting Airbnb’s resilient revenue growth of 10.5% in constant currency terms. These developments reflect a mixed sentiment among analysts regarding Airbnb’s future performance.
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