Airbnb Earnings Approach With Stock (ABNB) Underperforming

Airbnb Inc. (NASDAQ: ABNB) heads in to Q2 earnings release tomorrow with the trajectory of the stock mildly negative since the start of the year. With Airbnb's stock price down 1.29% in 2025, and 6.8% down in the past 5 years, long term bulls continue to look for a catalyst that can deliver a sustained rally.

Analysts are projecting an EPS of $0.94, close to a 10% improvement on the $0.86 reported a year ago. Revenue is estimated at $3.03 billion, representing a 10.26% increase from $2.75 billion in the same quarter last year, suggesting steady, if unspectacular, year-over-year growth in both earnings and sales.

Technically, the stock is trading below both its 50-day ($135.19) and 200-day ($133.76) simple moving averages. This positioning often indicates potential bearish momentum, suggesting that the path of least resistance might be downward, at least in the short term.

Airbnb's upcoming earnings report is a crucial test. The stock's performance suggests that markets are waiting for a clear signal about the company's future prospects. While concerns about softening U.S. demand are valid, Airbnb's strong brand, international growth opportunities, and potential for innovation should not be overlooked.

Analysts have been actively tweaking their EPS outlooks ahead of earnings, 5 boosting estimates in the month leading in.

Whether the earnings release sparks a breakout or leads to further consolidation depends on the company's ability to meet expectations, address concerns about U.S. demand, and provide a convincing outlook for the remainder of the year. The average move post earnings in recent periods has been 7.4%, so buckle up.