Here's Why Parnassus Value Equity Fund Sold Airbnb (ABNB)

Parnassus Investments, an investment management firm, released its “Parnassus Value Equity Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund focuses on owning a concentrated portfolio of U.S. large-cap stocks. For the third quarter of 2025, the fund reported a net return of 7.46% outperforming its benchmark, the Russell 1000 Value Index, which returned 5.33% for the same period. During the quarter, the portfolio reduced its weight in the IT sector to increase holdings in the Health Care sector. The fund’s top 5 holdings are also listed in the letter, showing the firm’s main investment positions heading into 2025.

In its third-quarter 2025 investor letter, Parnassus Value Equity Fund highlighted stocks such as Airbnb, Inc. (NASDAQ:ABNB). Headquartered in San Francisco, California, Airbnb, Inc. (NASDAQ:ABNB) operates a platform that connects hosts and guests. The one-month return of Airbnb, Inc. (NASDAQ:ABNB) was 19.94%, and its shares gained 3.42% of their value over the last 52 weeks. On December 17, 2025, Airbnb, Inc. (NASDAQ:ABNB) stock closed at $133.78 per share, with a market capitalization of $81.905 billion.

Parnassus Value Equity Fund stated the following regarding Airbnb, Inc. (NASDAQ:ABNB) in its third quarter 2025 investor letter:

"We believe Airbnb, Inc.'s (NASDAQ:ABNB) recent initiatives could create a structural drag on margins and are unlikely to generate meaningful revenue growth within our investment horizon. We have chosen to reallocate capital toward stocks in which we have higher conviction."

Airbnb, Inc. (NASDAQ:ABNB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held Airbnb, Inc. (NASDAQ:ABNB) at the end of the third quarter, which was 79 in the previous quarter. Airbnb, Inc. (NASDAQ:ABNB) reported revenue of $4.1 billion in the third quarter of 2025, marking an increase of 10% year-over-year. While we acknowledge the potential of Airbnb, Inc. (NASDAQ:ABNB) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Airbnb, Inc. (NASDAQ:ABNB) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.