Airbnb stock price crashed by over 7% on Wednesday as travel companies plunged after a major policy change by the Donald Trump administration. ABNB plunged to a low of $130, down by nearly 8% from its highest point this year.
Airbnb stock plunges as Trump stops visas for 75 countries
Airbnb share price retreated sharply after the Donald Trump administration said that it would halt issuing immigrant visas from 75 countries, including Brazil, Nigeria, and Somalia.
The pause will have a major impact as some of these countries see thousands of their citizens travel to the United States.
This announcement came on the same day that the World Travel & Tourism Council published its report on global travel in 2025. While the travel industry grew by 6.7% to $11.7 trillion in 2025, foreign visitors to the US dropped by 6.7% because of Donald Trump’s policies.
The report showed that 68 million visitors went to the United States in 2025, much lower than the 105 million who visited France. It was also lower than the 96.5 million who visited Spain.
Therefore, there is a likelihood that the travel will be much weaker this year than in 2025, especially now that Trump has placed a pause on travel.
Analysts have a mixed outlook on the ABNB stock
Wall Street analysts are not highly optimistic about the ABNB stock price. For example, a UBS analyst set a target of $130, which is about 5.7% lower than the current level. A Morgan Stanley analyst lowered the target to $130, while Wells Fargo, Barclays, and Truist have a target of $130, $120, and $108, respectively.
As a result, the consensus price target among analysts is $147, up by 11% from the current level, which is not all that encouraging.
The main reason why these analysts are cautious about the company is the its growth has slowed in the past few years as many travelers have opted for hotels.
The most recent results showed that Airbnb made $4.1 billion in revenue in the third quarter, up by 10% from what it made in the same period a year earlier. Its net income rose to $1.4 billion, while its free cash flow was $2.1 billion. These numbers make it a highly profitable company, a trend that may continue over time.
The challenge, however, is that its growth trajectory will remain under pressure in the coming years. For example, the annual revenue in 2025 is expected to come in at $12.17 billion, followed by $13.39 billion this year.
Another challenge is that the company is highly overvalued. Its forward price-to-earnings ratio stands at 33.98, higher than the sector median of 28. Booking Holdings has a multiple of 23, while Expedia has a multiple of 28.
Airbnb stock price technical analysis
The daily timeframe chart shows that the ABNB stock price has rebounded in the past few months, moving from a low of $110 in November to a high of $141. If moved above the important resistance level at $130, its highest swing in October and August.
The stock then crashed on Wednesday and then retested that level, confirming a break-and-retest pattern. This is a common continuation sign in technical analysis.
Therefore, there is a likelihood that the stock will rebound in the coming weeks, potentially to the year-to-date high of $141. A move above that level will point to more gains, potentially to the psychological level at $150.
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