Airbnb Inc ( ABNB ) shares are trading lower Friday afternoon as travel and leisure names came under pressure on rising energy costs and renewed inflation worries, which threatened the outlook for discretionary consumer spending ahead of the key summer travel season. Broader market sentiment also turned risk-off as oil prices jumped and consumer confidence weakened.

Here’s what investors need to know.

Airbnb ( ABNB ) stock is feeling bearish pressure. What’s behind ABNB decline?

Airbnb Depends On Healthy Discretionary Travel Demand

The current macro backdrop matters for Airbnb ( ABNB ) because the company's business depends heavily on consumers feeling confident enough to spend on non-essential travel, including vacation stays, short-term rentals and travel experiences booked through its global marketplace.

Unlike airlines, Airbnb ( ABNB ) does not directly bear jet fuel costs, but higher gasoline and energy prices can still hurt demand by making trips more expensive overall and squeezing household budgets before travelers ever book a stay.

Travel Stocks Slide As Inflation, Sentiment Concerns Build

The pressure on travel-related names came as the Consumer Discretionary Select Sector SPDR Fund fell 1.7%, making it the session's worst-performing major sector, while the U.S. Global Jets ETF also moved lower as investors reassessed the travel outlook.

At the same time, the final March University of Michigan consumer sentiment reading fell to 53.3 and one-year inflation expectations rose to 3.8%, reinforcing concerns that consumers may pull back on summer spending.

Airbnb Faces Tougher Setup Ahead Of Peak Summer Season

For Airbnb ( ABNB ), that creates a tougher near-term backdrop because any slowdown in bookings, shorter trip lengths or weaker pricing power could weigh on growth expectations even before the busiest part of the travel calendar begins.

Airbnb Earnings Due April 30 As Wall Street Eyes Profit, Revenue Growth

Looking further out, the next major catalyst for the stock arrives with the April 30 earnings report.

EPS Estimate: 30 cents (Up from 24 cents YoY)

Revenue Estimate: $2.62 Billion (Up from $2.27 Billion YoY)

Valuation: P/E of 32.5x (Indicates premium valuation relative to peers)

ABNB Analysts Keep Buy Consensus As Price Targets Reflect Mixed Views

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $148.00. Recent analyst moves include:

Truist Securities: Upgraded to Hold (Raises Target to $129.00) (Mar. 26)

Mizuho: Outperform (Raises Target to $175.00) (Mar. 3)

DA Davidson: Buy (Lowers Target to $150.00) (Feb. 17)

ABNB Shares Slide Friday Afternoon

ABNB Price Action: Airbnb ( ABNB ) shares were down 6.11% at $123.05 at the time of publication on Friday, according to Benzinga Pro data.

Image: Shutterstock