Weak Outlook Overshadows Airbnb's Quarterly Win

Analysts and options traders are chiming in on the results

Digital Content Manager
May 9, 2024 at 11:00 AM
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Despite first-quarter earnings and revenue beats, Airbnb Inc (NASDAQ:ABNB) stock is down 6% to trade at $148.51 after the company issued a lackluster fiscal second-quarter outlook. An earlier-than-usual Easter holiday and currency exchange rates overshadowed strong demand for international travel.

The results already drew four price-target cuts and two hikes, with Deutsche Bank adjusting lower to $148 from $158. Analysts are already bearish on ABNB, with 25 of 36 firms in coverage sporting a "hold" or worse rating, there is still room for downgrades. 

The security is on track for its first close below its 40-day moving average since November, and is distancing itself from a March 21, two-year high of $170.10. The shares are on track for their worst single-day percentage loss since May, and chipping away at their 8.4% year-to-date lead.

Options volume is already running at 11 times the intraday average volume, with 28,000 calls and 38,000 puts traded so far today. The most popular contract is the weekly 5/10 140-strike put, where traders are opening new positions.

This marks a sentiment shift, as bullish bets have been popular than usual among short-term traders. This is per Airbnb stock's Schaeffer's put/call open interest ratio (SOIR) of 1.10, which stands in the relatively low 21st percentile of readings from the past year.


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