Airbnb is increasing its focus on lowering prices through new tools for hosts as the company faces slowing demand growth, Morgan Stanley said Wednesday in a note.
The company reported Q1 diluted earnings late Tuesday of $0.18 per share, compared with a loss of $0.03 a year earlier. Revenue for the quarter that ended March 31 was $1.82 billion, up from $1.51 billion a year earlier.
Morgan Stanley said the company's Q2 room night guidance for growth of 9% to 13% shows a faster-than-expected decline in demand. The analysts cited price sensitivity, particularly in the US.
Airbnb's focus on improving supply affordability through new pricing tools may take multiple quarters for broad adoption and substantially lower prices, the analysts said.
Morgan Stanley reiterated an underweight rating on Airbnb (ABNB.NaE) and lowered the price target to $95 from $100. At least five other analysts cut their price targets.
Airbnb shares fell 11% in recent Wednesday trading.
https://www.nasdaq.com/articles/morgan-stanley-maintains-airbnb-inc.-abnb-underweight-recommendation
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