Airbnb, Inc. (ABNB), based in San Francisco, California, runs a global platform that connects travelers with hosts offering short-term stays. Through its website and mobile app, Airbnb manages bookings, payments, and customer support, while also ensuring trust and safety for users. In addition to accommodations, the platform offers unique local experiences and options for extended stays, enhancing how people travel and connect. 

Companies valued at $10 billion or more are generally classified as "large-cap" stocks. And with a market capitalization of $81.12 billion, Airbnb certainly fits right into this category. The company holds a leading position in the travel services industry by offering flexible, home-based accommodations that provide alternatives to traditional lodging.

Airbnb’s stock is holding on to modest gains at the moment. Over the past three months, its shares have gained a meager 1.7%. It is down 20.4% from its 52-week high of $163.93, which it had reached in February this year. Over the same period, the broader Dow Jones Industrial Average ($DOWI) has gained 7.9%, indicating that Airbnb is underperforming the broader market. 

On a year-to-date (YTD) basis, Airbnb’s stock has declined marginally, while over the past 52 weeks, it has gained 11.1%. In contrast, the Dow Jones Industrial Average gained 7.1% and 10.8% over the same periods, respectively. 

Airbnb’s slowdown has been evident in its technical setup, with the stock trading below both its 50-day and 200-day moving averages since early March this year. Despite a few short-lived rebounds in between, it has struggled to break above these levels, underscoring the persistence of its bearish trend.

Airbnb’s growth story appears to be losing momentum, which is dampening its stock performance. For the second quarter of fiscal 2025, the company’s revenue increased by 12.7% year-over-year to $3.10 billion, while its EPS grew 19.8% from the prior year’s period to $1.03. 

However, Airbnb also provided weak Q3 revenue guidance of $4.02 to $4.10 billion. This indicates an approximate 8% YOY growth, which is a decline from the growth the company reported in the second quarter. The company’s management certainly wants growth to accelerate. However, for that to happen, it needs a concrete roadmap and plans. 

To emphasize Airbnb’s underperformance, we note that one of its top rivals, Trip.com Group Limited (TCOM), is outperforming not only Airbnb’s stock but also has a better comparison with the broader market. Trip.com’s stock has gained 59.7% over the past 52 weeks and 7.4% YTD.

Wall Street analysts are recommending caution before investing in Airbnb’s stock, with tepid price action anticipated. The stock has a consensus rating of “Hold” from the 41 analysts covering it, and the mean price target of $141.56 is at a premium of 8.5% compared to current levels.