Airbnb (ABNB) is set to report fourth-quarter earnings later today. After a strong showing last week from fellow travel stock Expedia (EXPE), the results could offer the home-booking company a chance to show its business is on solid footing. Airbnb stock is down 8% from 12 months ago and 6% from when it last reported quarterly results in early November.

Shares tumbled 9% following Airbnb's Q3 report, which showed a profit below analysts' forecast.

Here's what to watch from the online travel agency's Q4 results due later today. Note: This article will be updated later with results. 

Airbnb Stock: Q4 Expectations

Wall Street expects earnings of 58 cents per share, according to FactSet. That's a big swing from the 55-cent loss Airbnb reported for Q4 2023, which included a large nonrecurring tax-related expenses.

Sales, meanwhile, are projected by analyst to grow 9% to $2.42 billion. Sales growth has steadily ticked lower following the "revenge travel" boom that started in 2022 as pandemic conditions eased.

Airbnb's Q4 gross bookings, a closely watched metric, are forecast to grow 11% to $17.24 billion, according to FactSet.

For the current quarter, analysts are expecting Airbnb to guide for about $2.3 billion in Q1 sales.

Deutsche Bank analyst Lee Horowitz, who has a hold rating for Airbnb, said the company's guidance for 2025 adjusted EBITDA margins will be "top of mind for investors."

That's because Airbnb's leadership has pledged to invest in the business to grow both its regional shares and expand its platforms to include more experiences and other types of bookings.

"We would expect Airbnb to give themselves some runway to invest more aggressively in the (second half 0f 2025) if need be, particularly in advertising, and point to 'no more than 200 basis point of year-over-year margin compression in 2025,'" Horowitz told clients in a note.

Airbnb Stock: Technical Ratings

Meanwhile, Airbnb stock has an IBD Composite Rating of 65 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.

Further, Airbnb's IBD Relative Strength Rating is 63 out of 99. The RS Rating means Airbnb has outperformed 63% of all stocks in IBD's database over the past year.

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