Airbnb stock rose about 16% after earnings, hitting a new 52-week high and trading around $175.85. The stock climbed in after-hours and pre-market trading, then rose again after the open.
The Numbers
Airbnb beat and raised. Every figure came in better than expected, and the company cited strong demand across all regions.
- EPS: $1.37 versus $1.25 expected.
- Revenue: $3.61 billion versus $3.58 billion expected, up 17% from a year earlier.
- Net income: $816 million, up from $642 million a year ago.
- Free cash flow: $1.25 billion, up 30% from the year-ago period.
For the current quarter, Airbnb guided revenue to $4.69–$4.77 billion. Analysts had looked for only $4.61 billion, so the whole range sits above expectations. The midpoint would be about 14% year-over-year growth.
Regional Bookings
Bookings growth ran in the high single digits in the US and Canada and in the region covering Europe and the Middle East. Asia Pacific grew in the high teens. Latin America grew about 20%, with particular strength in Brazil and Mexico. Airbnb said it continues to gain market share broadly across Latin America, calling it proof its expansion strategy is working.
Overall, Airbnb showed the market what it wanted: the money spent to expand is paying off. AI agents also appear to be working for the company.
Analyst Reaction
- Wedbush upgraded to outperform from neutral and set a $200 price target, up from $152, implying about $25 of upside from current levels. It pointed to positive signals from product initiatives, said the core platform and single fees are driving strength, and noted new efforts like hotels are off to a strong start, calling it a promising opportunity.
- Citizens raised its target to $190 from $170, keeping its outperform rating. It cited a strong Q2 with accelerating bookings growth and resilient travel demand.
- Barclays raised its target to $150 from $125 but kept an equal-weight rating. It updated its model on the reported quarter and current-quarter projections, yet holds a target roughly $25 below the current price.
That leaves a $50 gap between the Wedbush and Barclays outlooks, with Airbnb sitting in the middle.
Example Trade
My read: the breakout and 16% pop are impressive, and the stock is holding near the top of the day's range. I would not chase it hard, but I would want to take part in the move.
The trade aims to capture a bit more upside. I first looked at the September 170/185 call spread, but it could be skewed up to the 175/190 call spread, paired with selling the January 150 put. Selling that put allows full upside participation in the call spread and finances its cost. It also gives you the chance to get put into the stock at the $150 breakout point if the stock weakens over the next quarter. If the stock strengthens over the next 45 days, you get full participation in the September call spread. It costs little to set up.
