Burke Wealth Management Sold Airbnb (ABNB) due To Elevated Economic Sensitivity And Reduced Visibility

Burke Wealth Management, an investment management company, released its “Focused Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter was marked by significant volatility. Against this backdrop, the strategy returned +15.9% in the quarter compared to +10.9% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Burke Wealth Management highlighted stocks such as Airbnb, Inc. (NASDAQ:ABNB). Headquartered in San Francisco, California, Airbnb, Inc. (NASDAQ:ABNB) operates a platform that connects hosts and guests. The one-month return of Airbnb, Inc. (NASDAQ:ABNB) was -8.61%, and its shares gained 12.28% of their value over the last 52 weeks. On August 22, 2025, Airbnb, Inc. (NASDAQ:ABNB) stock closed at $129.92 per share, with a market capitalization of $79.542 billion.

Burke Wealth Management stated the following regarding Airbnb, Inc. (NASDAQ:ABNB) in its second quarter 2025 investor letter:

“Airbnb, Inc. (NASDAQ:ABNB): As part of desire to reallocate funds away from our more economically sensitive holdings and towards our more stable holdings, we made the difficult decision to sell our stake in AirBNB during the second quarter. AirBNB is the platform that pioneered the alternative travel space. It’s leadership position in a growing segment of travel and financial discipline is what attracted us to this company. It’s dependence on what is a cyclical global travel market is what drove us to sell the stock. To be clear, the decision to sell AirBNB was not driven by a disagreement with the strategic direction of the company but instead was due to worsening visibility on the global travel market due to the disruptions, economic and geopolitical, triggered by our multi-front trade war. Once the new trade agreements have been reached and some of the hurt feelings that have depressed travel into the US from foreign countries has subsided, AirBNB may be a stock that we revisit. However, for now, the elevated economic sensitivity and reduced visibility makes the risk/reward profile of this stock one that we will pass on.”

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A vacation home luxury bedroom setup with stunning decor showing a desired getaway experience.

Airbnb, Inc. (NASDAQ:ABNB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 79 hedge fund portfolios held Airbnb, Inc. (NASDAQ:ABNB) at the end of the second quarter, which was 66 in the previous quarter. Airbnb, Inc. (NASDAQ:ABNB) reported revenue of $3.1 billion in the second quarter of 2025, marking an increase of 13% year-over-year. While we acknowledge the risk and potential of Airbnb, Inc. (NASDAQ:ABNB) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Airbnb, Inc. (NASDAQ:ABNB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Airbnb, Inc. (NASDAQ:ABNB) and shared the list of best under-the-radar stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.