Airbnb’s AI assistant resolves 40 per cent of support issues

Airbnb (ABNB) shares rose 12% after Q3 results exceeded expectations, with revenue up 19% YoY and EPS at $3.16. Nights booked increased 16% to 155 million, and free cash flow reached $4.9 billion. Management forecasts 17% Q4 revenue growth and announced a $12 billion share buyback program. The company is exploring new growth areas and sees AI as a positive.

Airbnb (ABNB) shares rose 11% after reporting Q3 revenue of $4.9B, up 19% YoY. Nights and seats booked increased 16% to 155M, with gross booking value up 21% to $27.7B. CEO Chesky attributed growth to platform improvements and a 13% rise in first-time bookers. Free cash flow grew 29% to $1.4B, leading to a $12B stock buyback program. The company raised its full-year revenue growth target to the 'high teens'.

Oppenheimer increased its price target for Airbnb (ABNB) to $230 from $210, maintaining an Outperform rating. The firm cited Airbnb's raised Q4 revenue outlook of 16%-18% and the upcoming AI agent for trip planning in 2027.

Five companies—PayPal, General Motors, EPAM Systems, Lam Research, and Airbnb—are aggressively buying back their own stock amid market sell-offs. PayPal has spent $6 billion on buybacks in the past year, while General Motors authorized a $20 billion program. EPAM Systems raised its buyback authorization to $1.8 billion, Lam Research announced a $25 billion plan, and Airbnb authorized a $12 billion buyback.

Airbnb reported Q3 revenue of $4.87B, up 19%, its fastest growth in over 3 years. CEO Brian Chesky attributed growth to AI, which handles 40% of support tickets. Nights booked rose 16%, outpacing rivals Booking Holdings and Expedia. Analysts expect Airbnb's revenue to grow faster than Booking's through 2028.

Airbnb reported Q2 results with gross bookings up 21%, fastest new booker growth in 4 years, and outperformance vs. Expedia and Booking Holdings. Analysts note the company is back in growth mode.