Why Airbnb Stock Wilted on Wednesday

Both the weather and the summer tourism season are heating up, but you wouldn't know that from the performance of Airbnb (NASDAQ: ABNB) stock on Wednesday. Shares of the bellwether home accommodation specialist tumbled by almost 4% on the back of a significant price target cut from an analyst.

Doug Anmuth, from JPMorgan Chase unit J.P. Morgan, had a busy Wednesday. In addition to reevaluating a set of tech stocks under his coverage, he also took aim at several with a heavy online presence. With Airbnb, he took an ax to his price target, reducing it rather drastically to $110 per share from his previous level of $185.

Anmuth's reasoning wasn't immediately apparent. In making price target trims to other tech and tech-adjacent titles, however, the analyst said that top internet stocks are entering a more mature, lower-growth period in which they will be more subject to macroeconomic headwinds. With the global economy anticipated by many to be facing a slowdown, such companies will be hurt.

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Source Fool.com