Twitter Inc (TWTR)

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Airbnb, Twitter Fall as Goldman Sachs Says Sell
By: Dhirendra Tripathi | September 13, 2021

Investing.com – Airbnb (NASDAQ:ABNB) and Twitter (NYSE:TWTR) traded lower Monday as Goldman Sachs (NYSE:GS) put them in the sell category of U.S. internet stocks.

Both the stocks were down 3% to 4%.

Goldman analyst Eric Sheridan sees Airbnb at $132, around 17.5% lower from its current level of $160. He kept a target of $60 for Twitter and the stock fell below that level in today’s session.

Airbnb shares have a negative risk-reward skew when measured against a likely volatile travel environment in future, a relatively mature end-market and high levels of competitive intensity among players, the analyst said.

At the same time, Sheridan showed faith in the company, saying it is a strong player with runway for growth and margin expansion in the coming years.

He sees Airbnb generating a 2021-2026 revenue compound annual growth rate of 21% and a 2026 adjusted earnings margin of 32%.

In the second quarter, Airbnb’s nights and experiences booked almost trebled to 83.1 million. Gross booking value soared 320% to $13.4 billion while revenue quadrupled to $1.3 billion.

Net loss significantly narrowed to $68 million from $575 million in June quarter of 2020.

In Twitter’s case, the analyst said Goldman views the company as more of a differentiated media/publishing platform rather than the usual categorization of it being a social media platform.

Sheridan said the main debate on Twitter centers around whether the company can morph its core use case to appeal to a wider, more scaled audience base; and/or execute against more niche monetization opportunities that align with the platform’s current distribution.

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