Stock Movers Gap Sinks, Costco Rises, Airbnb Falls After Truist Downgrade
May 30, 2025
Gap's shares plummet due to a $300 million tariff impact, revealing struggles at Banana Republic and Athleta. Meanwhile, Costco thrives with earnings exceeding expectations, leveraging its scale to navigate economic challenges. In contrast, Airbnb's stock falters after a downgrade from Truist, slicing its price target. The retail sector's dynamics reveal a stark contrast between resilience and vulnerability in today's market.
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Gap Faces Tariff Challenges
- Gap expects tariffs to impact sales by $250-$300 million but still sees strong performance in key brands like Gap and Old Navy.
- The company actively works to reroute supply chains to keep any country's tariff exposure below 20%.
Airbnb Downgraded on Travel Slowdown
- Truist downgraded Airbnb to sell with a target price cut to $106 from $112 reflecting concerns about slower summer travel.
- North American travel demand is slowing, but Asia Pacific and Latin America remain growth areas.
Costco Leverages Scale Amid Tariffs
- Costco posted strong Q3 earnings and plans selective price increases, leveraging scale to handle tariffs and supply issues.
- Analysts praise Costco's same-store sales strength, helping it mitigate tariff impacts effectively.