Cathie Wood Backs Airbnb Before Q1 Earnings, Despite Gloomy Forecast

Airbnb (NASDAQ: ABNB) is poised to release its Q1 2025 earnings report on May 1, with analysts forecasting a significant decline in earnings per share compared to last year. Despite the anticipated downturn, Cathie Wood’s ARK Investment Management has demonstrated strong confidence in Airbnb’s future by increasing its stake in the company.

Cathie Wood Bets on Airbnb Despite Gloomy Earnings Forecast

As Airbnb prepares to announce its Q1 2025 earnings on May 1, the financial community is bracing for a notable decrease in adjusted earnings per share, projected to fall by 39% from the previous year. Despite this anticipated decline, ARK Investment Management, led by the renowned investor Cathie Wood, has been actively increasing its holdings in Airbnb. ARK recently bought 60,068 shares worth about $7.4 million which was preceeded by a buy of 80,361 shares valued near $9 million.

This move suggests a strong belief in the company’s long-term growth potential, even amid current challenges. Wood’s investment strategy often focuses on innovative companies, and her continued interest in Airbnb highlights her confidence in its future prospects.

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ABNB Stock Brief

Airbnb’s stock has experienced fluctuations leading up to its earnings report. The stock opened at $123.28, with a current price of $124.33 as of April 29, 2025. The stock has traded between a low of $123.19 and a high of $125.42 during the day.

Over the past year, Airbnb’s stock has ranged from a low of $99.88 to a high of $165.50. Analysts have set a price target range from $95.00 to $200.00, with a mean target of $147.146, reflecting varied expectations for the company’s performance.

The recommendation for Airbnb’s stock remains at a ‘Hold,’ with a mean recommendation of 2.6, indicating a cautious optimism among analysts. Recent closing prices show a gradual upward trend, suggesting a positive market sentiment as investors await the earnings report.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.