Cathie Wood Is Buying This E-Commerce Stock Again — Is a Surprise Beat Coming?

April 29 – Cathie Wood’s ARK Investment (ARKK) Management picked up another batch of Airbnb (NASDAQ:ABNB) shares, adding to a growing stake ahead of the vacation rental platform’s first-quarter results due May 1.

ARK snapped up 60,068 shares worth about $7.4 million, following last week’s buy of 80,361 shares valued near $9 million. The purchases reflect renewed confidence in Airbnb’s long-term outlook, despite looming earnings pressure.

Wall Street is forecasting a rougher Q1, with analysts projecting earnings per share of $0.23, down from $0.41 in the year-ago quarter. Revenue is expected to fall to $2.26 billion from $2.5 billion in Q4. Analysts cite weak gross bookings and macro headwinds, though international strength may cushion domestic softness.

Canaccord Genuity’s Michael Graham trimmed his price target to $180 from $190 but held his “Buy” rating, implying about 46% upside. He sees mixed results, with revenue growth slowing quarter over quarter but still rising 1012% year-on-year.

Airbnb shares have dropped about 30% since their mid-February peak.

This article first appeared on GuruFocus.