Airbnb posted higher fourth-quarter revenue but lower profit, as investments in new business drive up expenses. The vacation rental company on Thursday posted a profit of $341 million, or 56 cents a share, in the quarter ended Dec. 31, down from $461 million, or 73 cents a share, a year earlier.
Analysts forecast 67 cents a share, according to FactSet. The decline in earnings was due to planned investments in new growth and policy initiatives, as well as a $90 million charge related to non-income tax matters. Total costs and expenses increased 22% from the year before. Airbnb is investing in its new Experiences product and aiming to expand its presence in more geographical markets. The company said at the start of 2025 it would invest up to $250 million in launching and scaling new businesses that year. Along with Experiences, Airbnb has started partnering with boutique hotels in certain cities and is aiming to bring more hotels onto its platform. Fourth-quarter revenue rose 12% to $2.78 billion. Analysts polled by FactSet expected $2.71 billion. For the first quarter, Airbnb anticipates revenue of $2.59 billion to $2.63 billion, compared with the $2.53 billion Wall Street was projecting. Full-year revenue is expected to increase to at least a low-double-digit percentage, Airbnb said. Wall Street is guiding for 10% revenue growth.

The Swiss stock market ended trading on Thursday with a slight decline. The SMI dropped 0.1 percent to 13,530 points. The reporting season continued to set the pace. Swisscom shares jumped 1.9 percent after the 2025 figures were released, becoming the biggest winner in the SMI. The dividend for 2025 was raised by 18 percent to 26 CHF. Shares in the luxury goods sector presented a mixed picture. While Richemont shares closed little changed after interim gains, Swatch fell by 1.4 percent. Hermes also caught the markets by surprise with a better-than-expected recovery in sales. “Kering and, above all, the Gucci brand had already shown that the market had been overly pessimistic about luxury goods manufacturers,” commented one trader. This has now been confirmed by Hermes and is likely to drive up shares across the entire sector. In the Christmas quarter, sales jumped 9.8 percent year-on-year. The confirmed outlook was therefore described as conservative. In contrast, Holcim shares slumped by 8.5 percent. The shares of other building materials manufacturers in Europe were also under significant pressure. The year 2026 will be decisive for the EU Emissions Trading System (EU ETS) and the launch of the Carbon Border Adjustment Mechanism (CBAM).

Europe
European stock markets ended Thursday broadly lower. At the close, the Stoxx Europe 600 index lost 0.5% to 618.52 points, after reaching a new intraday high of 625.90 points. The CAC 40 and SBF 120, on the other hand, gained 0.3% each, having reached new all-time highs during the session of 8,437.4 points and 6,384.1 points, respectively. The DAX 40 ended flat on the Frankfurt Stock Exchange, while the FTSE 100 lost 0.7% in London. ESSILORLUXOTTICA (+4.2%): On Wednesday evening, the lens and eyewear manufacturer published its results for 2025, which were marked by pressure on its margins and accelerated revenue growth in the fourth quarter. HERMES (+2.55%): The luxury goods group reported slightly better-than-expected results for 2025 on Thursday, thanks to sustained sales growth in the fourth quarter, driven in particular by strong demand in Japan and the US. MICHELIN (+4.9%): The tire manufacturer expects its operating profit to rebound in 2026 following a decline in 2025, due to lower volumes and the appreciation of the euro against the dollar. UNIBAIL-RODAMCO-WESTFIELD (+2.2%): The shopping center operator reported Thursday that it is targeting adjusted recurring net income per share of €9.15 to €9.30 this year, with this key indicator growing faster than expected last year. UNILEVER (+1.8%): The food giant saw its net income jump by nearly 65% in 2025 to €9.47 billion.

United States
Major U.S. indexes slid on Thursday, weighed down by new worries that AI will hurt the long-term outlook of tech, financial and logistics companies. The S&P 500 dropped 1.6%, while the Dow declined 1.3%, or 670 points. The Nasdaq led losses, retreating 2%. On Thursday, for example, a Florida firm called Algorhythm Holdings said it could use AI to improve efficiency in the trucking business. In the wake of that news release - from a company that recently focused on selling karaoke machines - shares of airlines, railroads and trucking firms slid. In the end, the declines shaved more than $17 billion in market value off companies in the Dow Jones Transportation Index, according to Dow Jones Market Data. C.H. Robinson shares lost around 15%, their worst one-day decline since 2019. Expeditors International of Washington fell 13%, its worst day since 1998. That drop highlighted how AI fears have rolled through different parts of the market in recent sessions. As tech and finance stocks fell, traders piled into shares of businesses they are betting will be insulated from any AI shocks to the economy: consumer staples and utilities, including companies such as Walmart and the electricity provider Exelon Corp. Concerns about outsize spending at the tech companies funding the AI build-out have also lingered. Shares of Amazon notched their eighth consecutive daily decline on Thursday. Last week, the retail giant unveiled plans for a massive increase in AI-related spending. Apple stock declined 5%. Other popular bets unwound too. Gold futures lost 2.9%. Silver slid 9.8%, continuing a streak of highly volatile trading. Shares in AppLovin slid 20% even after the advertising software company sought to play down AI worries as it released earnings. Networking company Cisco Systems dropped 12%, as shareholders focused on the firm’s narrowing margins.

Asia
Asian indexes diverged for the Friday trading session. In Tokyo, the Nikkei 225 shed 1.2 percent to 56,967 points. The Shanghai market slipped 0.8 percent, while Hong Kong slumped 2.1 percent. In Sydney, the loss amounted to 1.4 percent. Trading has already ended there. The technology-heavy stock market in Seoul, South Korea, is bucking the downward trend. The record chase of the past few days continues there, with the Kospi gaining 0.9 percent. Heavyweight Samsung Electronics is supporting the market with a plus of over 3 percent. Semiconductor stock SK Hynix increased by 1.1 percent.

Bonds
Long-dated U.S. government debt yields ticked lower following U.S. labor data that is slightly disappointing but still show resilience. The 10-year Treasury note yield declined by 7 basis points to 4.10%. Investors sought shelter in government bonds, driving the yield on the benchmark 10-year Treasury note to a two-month low of 4.103%, according to Tradeweb. Yields, which fall when bond prices rise, added to declines after a $25 billion auction of 30-year Treasury bonds met with extremely strong demand from investors.

Analysis
Novartis target price: JPMorgan upgrades to CHF 135 (125) – Overweight
AMS Osram target price: Barclays upgrades to CHF 11 (10) – Equal Weight
SGS target price: UBS upgrades to CHF 92 (90) – Neutral
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