DA Davidson Cuts Airbnb Target to $150 on AI Valuation Concerns
DA Davidson lowered Airbnb's target price by 3.2% to $150 despite a solid Q4 showing revenue up 12% and adjusted EBITDA rising 2.7%. Investor worries over AI-driven valuation compression outweighed growth in room nights (+9.8%) and average daily rates (+5.9%).
1. Analyst Price Target Cut
On February 17, DA Davidson analyst Tom White trimmed Airbnb’s price target by 3.2% to $150 while maintaining a Buy rating, attributing the cut to market-wide valuation multiple compression driven by investor concerns over AI.
2. Q4 2025 Financial Results
Airbnb reported Q4 revenue growth of 12% year-over-year, with room nights up 9.8% and average daily rate rising 5.9%, resulting in adjusted EBITDA increasing 2.7%.
3. Investor AI Concerns
Despite strong operating metrics, investors raised questions about potential AI-powered short-term rental platforms and the impact of AI search on Airbnb’s sponsored ad revenue, creating valuation headwinds.
4. Airbnb's AI Strategy
CEO Brian Chesky noted that the company’s custom AI support agent now resolves one-third of support issues and appointed former Meta AI lead Ahmad Al-Dahle as CTO to build an AI-native user experience.