The company's earnings per share missed the mark by a penny
Airbnb Inc (NASDAQ:ABNB) stock is 9.2% lower at $134.80 at last glance following a mixed third-quarter earnings report. The online vacation home rental company reported earnings per share of $2.13 that missed expectations by one cent, and slightly better-than-expected revenue of $3.73 billion. Profits were pressured by the company's spending efforts to break into international markets.
Pacing for its worst daily percentage loss since May 2023, ABNB is on track to snap a five-day winning streak and is erasing all of this week's gains, now down 1.4% over the last five sessions. The security also just moved back below its year-to-date breakeven mark, now down 1.2% since the start of 2024, while its recently supportive 20-day moving average just moved back above its current perch.
In the options pits, Airbnb stock has already seen 15 times the intraday volume. So far, 15,000 calls and 25,000 puts have traded hands, and new positions are opening at the top two contracts, the December 120 and 130 puts.
The preference for bearish bets is in line with recent sentiment. This is per Airbnb stock's Schaeffer's put/call open interest ratio (SOIR) of 2.41 that stands higher than 77% of readings from the past 12 months. What's more, it's 50-day put/call volume ratio of 1.70 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the 86th percentile of annual readings.
Lastly, no less than seven analysts hiked their price targets on ABNB following the results. TD Cowen and Wedbush chimed in with the loftiest objectives, with both adjusting up to $155 -- a 15% premium to Airbnb stock's current perch.