ABNB Stock Rises After-Market On Strong Q1 Forecast: Cathie Wood Dumps Shares But Retail Has Turned ‘Extremely Bullish’

• Airbnb’s revenue rose 12% to $2.80 billion in the fourth quarter, beating analysts' estimates of $2.71 billion, according to data from Fiscal AI.
• The company said on Thursday that it has started offering its “Reserve Now, Pay Later” feature in the United States, with guests paying $0 upfront.
• On Thursday, Wood sold nearly 260,000 shares of Airbnb valued at $30.1 million as of the stock’s last closing price of $151.96.

Airbnb shares rose nearly 5% in overnight trading and are likely to snap a four-day losing streak if momentum holds into Friday’s trading hours, boosted by a better-than-expected first-quarter forecast as the company bets on its move to bring in hotels on its platform to increase its customer base.

The stock has fallen nearly 15% so far this year as Cathie Wood has been on a selling spree of Airbnb’s stock, as well as since major consumer-facing stocks see an impact from people cutting back on spending in an economy burdened with rising prices.

Earnings Snapshot: Revenue Beat, EPS Miss

Airbnb’s revenue rose 12% to $2.80 billion in the fourth quarter, beating analysts' estimates of $2.71 billion, according to data from Fiscal AI.

However, the company’s earnings per share came in at $0.56, compared with Wall Street expectations of $0.66 majorly due to its investment in technology and marketing to boost demand.

This New Payment Feature Drove Bookings

Airbnb said on Thursday that it had begun offering its “Reserve Now, Pay Later” feature in the United States, with guests paying $0 upfront, which led to booking acceleration in the fourth quarter, especially for larger, higher-priced homes.

Q1 Guidance Impresses

The company said it expects first-quarter revenue of $2.59 billion to $2.63 billion, representing year-over-year growth of 14% to 16%. This compares to analysts’ expectations of $2.53 billion.

Cathie Wood Continues Selling ABNB

Wood’s Ark Investment Management has been selling Airbnb shares ahead of earnings, causing significant volatility for the vacation-rental firm. On Thursday, Wood sold nearly 260,000 shares of Airbnb valued at $30.1 million as of the stock’s last closing price of $151.96.

ARK sold a total of 259,652 shares of Airbnb, with 217,300 shares purchased by its ARKK ETF and 35,497 shares sold by its ARKW ETF, according to the Ark Invest Tracker on X. Another 6,855 shares were sold by ARKF ETF.

Retail Traders Turn ‘Extremely Bullish’ On Stocktwits

Retail sentiment on Airbnb jumped to ‘extremely bullish’ from ‘bullish’ territory a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

A bullish user on the platform said that the “miss on the eps was just noise.”

In the last 24 hours, retail message volume on Stocktwits jumped 6,300%.

Shares of Airbnb have declined more than 28% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Dutch Bros Poised To Snap 4-Day Losing Streak After Q4 Beat – Retail Turns ‘Extremely Bullish’

Share

·

Add us on