Airbnb Inc. (ABNB) shares are experiencing a dip on Monday, possibly linked to Carnival Corporation’s (CCL) recently released third-quarter earnings report. While Carnival’s report showed strong year-over-year growth in revenue and a record-breaking operating income, its adjusted earnings per share (EPS) guidance for the fourth quarter came in lower than anticipated. This discrepancy has sparked concerns among investors and may be contributing to the downward pressure on Airbnb’s stock.
Here’s a closer look at Carnival’s Q3 earnings highlights:
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Adjusted EPS:
Carnival reported an adjusted EPS of $1.27, exceeding the consensus estimate of $1.16.*
Revenue:
The company’s revenue soared to $7.90 billion, marking a 15.2% year-over-year increase and surpassing analysts’ expectations of $7.83 billion.*
Operating Income:
Operating income surged by 34% to $2.2 billion, demonstrating strong operational efficiency.*
Adjusted EBITDA:
Adjusted EBITDA also saw a significant climb, rising 25% to $2.8 billion.However, the Q4 adjusted EPS guidance of 5 cents, significantly below estimates, raises concerns. This unexpected shortfall might be contributing to the cautious sentiment surrounding Airbnb, leading to the stock’s decline.
Further contributing to the bearish outlook, analysts are voicing their concerns. Cantor Fitzgerald’s Deepak Mathivanan reiterated an Underweight rating on Airbnb with a $94 price target. Adding to the pressure, Airbnb’s short interest has recently risen by 8.25%, reaching 14.31 million shares sold short, representing 3.28% of its float. This indicates that a significant number of investors are betting on a further decline in the stock price.
At the time of writing, Airbnb shares are down 1.41%, trading at $126.44. It remains to be seen whether this downward trend will persist or if the stock will recover in the coming days. Investors will be closely watching for further developments and market sentiment surrounding both Airbnb and Carnival Corporation.
