12:59 PM EST, 02/14/2025 (MT Newswires) -- Airbnb's ( ABNB ) shares surged intraday Friday after the company outlined a full-year core earnings margin outlook that analysts said was higher than expected.

Late Thursday, the vacation rental company logged a bigger-than-projected fourth-quarter profit as strong demand propelled revenue above Wall Street's estimates. Airbnb ( ABNB ) expects adjusted earnings before interest, taxes, depreciation, and amortization margin of at least 34.5% this year, versus 36% reported for 2024.

Wedbush Securities said that the outlook was ahead of investor expectations and above its initial estimate by about 100 basis points. "We think the overhang on shares regarding near-term margin uncertainty has been alleviated," the brokerage, which increased its price target on the Airbnb ( ABNB ) stock to $175 from $155, said in a Thursday note to clients.

Separately, Oppenheimer said Friday that the 2025 margin guidance was roughly 100 to 150 basis points above buyside expectations.

The company's shares were up nearly 15% in Friday trade.

Airbnb ( ABNB ) is expected to continue to invest "aggressively" this year, though the scope for margin expansion in the near term is limited, B. Riley Securities said Friday.

This year, the company intends to invest between $200 million and $250 million towards launching and scaling new businesses, which will be introduced in May, Chief Financial Officer Ellie Mertz said on a Thursday earnings conference call, according to a FactSet transcript.

"Even as Airbnb's ( ABNB ) push into expansion markets through brand ad campaigns appears to be paying off, (management) is also laying the groundwork to expand beyond the core lodging through the addition of adjacent products/services on the platform," B. Riley analysts Naved Khan and Ryan Powell said in a note to clients. "As a result, we expect the company to continue to invest aggressively in 2025 as it focuses on realizing the growth opportunities in front, and we see limited scope for margin expansion (near term)."

For the ongoing quarter, the company projects adjusted EBITDA and adjusted EBITDA margin to drop from a year earlier.

"Because (the planned) investments will roll out throughout the year, their impacts on our quarterly adjusted EBITDA margin will be the most pronounced in the first nine months of 2025," Mertz told analysts. "As these new businesses scale over the coming years, we expect them to make a significant contribution to revenue growth."

Price: 162.48, Change: +21.44, Percent Change: +15.20