Airbnb Stock Falls As Tariff Fight Clouds Travel Outlook

Airbnb Inc (NASDAQ:ABNB) traded lower on Wednesday afternoon as a broad sell-off in technology shares pressured growth stocks across Wall Street.

• Airbnb shares are sliding. Why are ABNB shares down?

The Nasdaq-100 was down more than 1.5% by midday, its weakest session in nearly a month, after sharp declines in semiconductor and software names spilled over into the wider sector.

Here’s what investors need to know.

Unpacking The Risks Of Tariff Uncertainty

Investors stayed cautious ahead of a closely watched Supreme Court ruling on the legality of President Donald Trump's tariffs. Prediction markets see only a 35% chance the levies are upheld, raising the risk of fresh uncertainty around global trade, cross-border travel and discretionary consumer spending that are critical drivers of Airbnb's business.

At the same time, West Texas Intermediate crude extended a sixth straight day of gains, climbing above $62 a barrel as geopolitical risks tied to Iran lifted energy stocks. Higher oil prices raise airline and transportation costs, a headwind for leisure travel that can weigh on booking volumes across Airbnb's platform.

Airbnb operates a global marketplace that matches hosts offering short-term home rentals and experiences with guests. The company generates revenue primarily by charging service fees on each booking, leaving its results highly sensitive to travel demand, consumer confidence, and investor appetite for high-growth internet names.

Benzinga Edge Rankings

Benzinga Edge data shows Airbnb carries a Growth score of 63.21, outpacing its Momentum score of 43.57 and Value score of 37.81, highlighting stronger long-term growth potential despite near-term stock weakness.

Crucial Earnings Report: Airbnb’s Growth Validation

The upcoming earnings report on Feb. 12 will be crucial in validating Airbnb’s potential for growth.

• EPS Estimate: 66 cents (Down from 73 cents year-over-year). EPS expectations of 66 cents represent a challenge for Airbnb to show that its growth strategies are yielding profitable results despite a Y/Y decline.
  
• Revenue Estimate: $2.71 billion (Up from $2.48 billion Y/Y). Revenue of $2.71 billion would validate the optimistic outlook from analysts regarding Airbnb’s market positioning and growth potential.
  
• Valuation: P/E of 33.4x. This premium valuation suggests investors are betting on Airbnb’s ability to leverage its data and AI capabilities to drive future growth.

Price Action

ABNB Price Action: Airbnb shares closed Wednesday down 5.20% at $132.79 at the time of publication on Wednesday, according to Benzinga Pro data.