Airbnb Names Ex-Booking.com Hotel Boss and Tripadvisor Exec as Chief Business Officer

Airbnb's stock dropped to $149.58, a 23% decline from its October peak, due to concerns over Meta's AI agent Muse potentially disrupting its booking model. Despite strong recent financials, including double-digit revenue growth and a robust cash position, investor fears drove the selloff. Other travel stocks also fell. Analysts remain optimistic, with price targets around 30-34% above current levels.

Airbnb (ABNB) is expanding into hotels, car rentals, and other services, raising concerns about profit margins. Operating margin fell to 21% from 23% year-over-year. The stock trades at a premium, with a P/E of 32.9. Management raised 2026 revenue growth outlook to mid-teens and adjusted EBITDA margin to at least 35.5%. No 2027 margin guidance was provided, leaving investors to watch reported figures.

Airbnb (ABNB) fell 8% to $150 despite 17% revenue growth, as investors reacted to Meta's AI agent Muse, which could bypass travel intermediaries. Booking Holdings (BKNG) and Expedia (EXPE) also dropped. Airbnb's unique inventory and direct host-guest relationships may mitigate AI impact. The stock's consensus target is $184.35.

Airbnb CEO Brian Chesky announced at Skift Global Forum that the company will launch an AI agent in 2027, describing it as more advanced than a chatbot. Chesky had previously mentioned this plan during the August earnings call, stating that the AI would help plan trips, such as family vacations to Europe. He also mentioned that the company is piloting richer AI interfaces.

Meta's AI app Muse, led by Alexandr Wang, became the top free app on U.S. and Canadian app stores, with 2.8M downloads in two weeks. Investors fear it may disrupt sectors like financials and travel. Meta's stock rose 13%, while financials and travel stocks fell. Shopify and PayPal also gained after partnering with Muse.

Airbnb launched a Housing Accelerator, pledging $250 million to potentially unlock $5 billion in capital over a decade. The goal is to build 750,000 homes that have cleared regulatory hurdles but need financing, according to the company.