ABNB attracted no fewer than 13 price-target cuts
Airbnb Inc (NASDAQ:ABNB) stock is down 14.4% to trade at $111.64 at last check, brushing off better-than-expected revenue for the second quarter after the company's profits fell 15%, missing estimates despite rising bookings amid higher income taxes.
The results ushered no fewer than 13 price-target cuts, including one from Deutsche Bank to $90 from $144. Analysts are hesitant toward ABNB, with 24 of the 36 in coverage calling it a tepid "hold" or worse.
Airbnb stock could mark its biggest single-day percentage loss on record today. The equity is trading at fresh 52-week lows, and is on track for its fourth loss in the last five sessions. So far this year, ABNB shed 4.6%.
Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day call/put volume ratio of 1.29 ranks higher than 77% of annual readings. This indicates traders have been more bullish than usual, but an unwinding of this optimism may create additional headwinds.
Drilling down to today's options activity, 20,000 calls and 31,000 puts have swapped hands, which is 9 times the average intraday volume. Most active is the August 100 put, followed by the 110 put in the same series, with positions being opened at both.