Why Airbnb Stock Got Evicted Today
Shares of the vacation rental platform Airbnb (NASDAQ: ABNB) tumbled 4.6% as of 1:35 p.m. ET on Thursday after not one but two separate analysts decided to cut their price targets on the stock.
First Citigroup cut its estimated valuation of Airbnb from $200 to $160 today. Then, less than an hour later, Truist cut its price target from $160 to just $120 a share.
Granted, Airbnb shares only cost about $91 and change right now, so even a $120 price target implies more than 31% upside in the shares. Nevertheless, Truist is only rating Airbnb a hold on worries that second-quarter earnings -- which are due out on Aug. 10 -- might disappoint, as a strong U.S. dollar means that profits earned outside the U.S. will be worth less when translated into U.S. dollars for incorporation into the income statement. Further out, the analysts warns that if a recession is coming, this could hurt demand for travel, adding future sales weakness to worries about Airbnb's profits.
Source Fool.com
