Truist Downgrades Airbnb (ABNB) Stock to Sell, Reduces PT

On May 30, Truist Securities downgraded Airbnb, Inc. (NASDAQ:ABNB)’s stock to “Sell” from “Hold.” This rating comes amidst soft summer leisure trends and worries over valuation. Also, the firm reduced its price target on the company’s stock to $106 from the prior target of $112.

Truist Downgrades Airbnb (ABNB) Stock to Sell, Reduces PT

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

The firm warned that the US and European demand trends seem to be weaker than the investors are presently expecting. Notably, the downgrade by the firm forms part of a broader recalibration of expectations throughout the lodging sector.

The analysts, led by C. Patrick, hint at a combination of weaker consumer and business confidence, government travel cuts, and lower inbound international demand trends. Collectively, these factors resulted in the softness in booking trends.

In Q2 2025, Airbnb, Inc. (NASDAQ:ABNB) expects adjusted EBITDA to increase on a YoY basis. However, adjusted EBITDA margin is expected to be flat-to-down slightly versus Q2 2024. Notably, marketing expense is anticipated to grow faster than revenue on a YoY basis in Q2 2025, partially because of its Summer Release and investments in new growth initiatives. Airbnb, Inc. (NASDAQ:ABNB) plans to invest $200 million – $250 million in launching and scaling new businesses in 2025.

While we acknowledge the potential of ABNB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than ABNB and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None.