As the person in charge of Airbnb’s worldwide ban on parties, she’s spent more than three years figuring out how to battle party “collusion” by users, flag “repeat party houses” and, most of all, design an anti-party AI system with enough training data to halt high-risk reservations before the offender even gets to the checkout page.
It’s been a bit like a game of whack-a-mole: Whenever Banerjee’s algorithms flag some concerns, new ones pop up.
Airbnb defines a party as a gathering that occurs at an Airbnb listing and “causes significant disruption to neighbors and the surrounding community,” according to a company rep. To determine violations, the company considers whether the gathering is an open-invite one, and whether it involves excessive noise, trash, visitors, parking issues for neighbors, and other factors.
Bannerjee joined the company’s trust and safety team in May 2020 and now runs that group. In her short time at the company, she’s overseen a ban on high-risk reservations by users aged 25 and under, an pilot program for anti-party AI in Australia, heightened defenses on holiday weekends, a host insurance policy worth millions of dollars, and this summer, a global rollout of Airbnb’s reservation screening system.
Some measures have worked better than others, but the company says party reports dropped 55% between August 2020 and August 2022 — and since the worldwide launch of Banerjee’s system in May, more than 320,000 guests have been blocked or redirected from booking attempts on Airbnb.
Overall, the company’s business is getting stronger as the post-pandemic travel boom starts to fade. Last month, the company reported earnings that beat analysts’ expectations on earnings per share and revenue, with the latter growing 18% year-over-year, despite fewer-than-expected number of nights and experiences booked via the platform.
Turning parental party radar into an algorithm
Courtesy: Airbnb
Airbnb says the pandemic and hosts’ fears of property damage are the main drivers behind its anti-party push, but there have been darker incidents as well.
A Halloween party at an Airbnb in 2019 left five people dead. This year between Memorial Day and Labor Day weekends, at least five people were killed at parties hosted at Airbnbs. In June, the company was sued by a family who lost their 18-year-old son in a shooting at a 2021 Airbnb party.
When Banerjee first joined Airbnb’s trust team in summer 2020, she recalls people around her asking, “How do you solve this problem?” The stream of questions, from people above and below her on the corporate ladder, contributed to her anxiety. Airbnb’s party problem was complex, and in some ways, she didn’t know where to start.
As a mother of five, Banerjee knows how to sniff out a secretive shindig.
Last summer, Banerjee’s 17-year-old daughter had a friend who wanted to throw an 18th birthday party – and she was thinking about booking an Airbnb to do it. Banerjee recalls her daughter telling her about the plan, asking her whether she should tell her friend not to book an Airbnb because of the AI safeguards. The friend ended up throwing the party at her own home.
“Being a mother of teenagers and seeing teenage friends of my kids, your antenna is especially sharp and you have a radar for, ‘Oh my God, okay, this is a party about to happen,” Banerjee said. “Between our data scientists and our machine learning engineers and us, we started looking at these signals.”
For Banerjee, it was about translating that antenna into a usable algorithm.
In an April 2020 meeting with Nate Blecharczyk, the company’s co-founder and chief strategy officer, Banerjee recalls strategizing about ways to fix Airbnb’s party problem on three different time scales: “right now,” within a year, and in the general future.
For the “right now” scale, they talked about looking at platform data, studying the patterns and signals for current party reports, and seeing how those puzzle pieces align.
The first step, in July 2020, was rolling out a ban on high-risk reservations by users under the age of 25, especially those who either didn’t have much history on the platform or who didn’t have good reviews from hosts. Although Airbnb says that blocked or redirected “thousands” of guests globally, Banerjee still saw users trying to get around the ban by having an older friend or relative book the reservation for them. Two months later, Airbnb announced a “global party pan,” but that was mostly lip service – at least, until they had the technology to back it up.
Around the same time, Banerjee sent out a series of invitations. Rather than to a party, they were invites to attend party risk reduction workshops, sent to Airbnb designers, data scientists, machine learning engineers and members of the operations and communications teams. In Zoom meetings, they looked at results from the booking ban for guests under age 25 and started putting further plans in motion: Banerjee’s team created a 24/7 safety line for hosts, rolled out a neighborhood support line, and decided to staff up the customer support call center.
One of the biggest takeaways, though, was to remove the option for hosts to list their home as available for gatherings of more than 16 people.
Courtesy: Airbnb
Now that they had a significant amount of data on how potential partiers might act, Banerjee’s had a new goal: Build the AI equivalent of a neighbor checking on the house when the high-schooler’s parents leave them home alone for the weekend.
Around January 2021, Banerjee recalled hearing from Airbnb’s Australia offices that disruptive parties at Airbnbs were up and coming, just like they were in North America, as travel had come to a relative standstill and Covid was in full swing. Banerjee considered rolling out the under-25 ban in Australia, but after chatting with Blecharczyk, she decided to experiment with a party-banning machine learning model instead.
But Banerjee was nervous. Soon after, she phoned her father in Kolkata, India – it was between 10pm and 11pm for her, which was mid-morning for him. As the first female engineer in her family, Banerjee’s father is one of her biggest supporters, she said, and typically the person she calls during the most difficult moments of her life.
Banerjee said, “I remember talking to him saying, ‘I’m just very scared – I feel like I’m on the verge of doing one of the most important things of my career, but I still don’t know if we are going to succeed, like we have the pandemic going on, the business is hurting… We have something that we think is going to be great, but we don’t know yet. I’m just on this verge of uncertainty, and it just makes me really nervous.'”
Banerjee recalled her father telling her that this has happened to her before and that she’d succeed again. He’d be more worried, he told her, if she was overconfident.
In October 2021, Banerjee’s team rolled out the pilot program for their reservation screening AI in Australia. The company saw a 35% drop in parties between regions of the country that had the program versus those that did not. The team spent months analyzing the results and upgraded the system with more data, as well as safety and property damage incidents and records of user collusion.
How the AI system works to stop parties
Listings on Airbnb
Source: Airbnb
Imagine you’re a 21-year-old planning a Halloween party in your hometown. Your plan: Book an Airbnb house for one night, send out the “BYOB” texts and try to avoid posting cliched Instagram captions.
There’s just one problem: Airbnb’s AI system is working against you from the second you sign on.
The party-banning algorithm looks at hundreds of factors: the reservation’s closeness to the user’s birthday, the user’s age, length of stay, the listing’s proximity to where the user is based, how far in advance the reservation is being made, weekend vs. weekday, the type of listing and whether the listing is located in a heavily crowded location rather than a rural one.
Deep learning is a subset of machine learning that uses neural networks – that is, the systems process information in a way inspired by the human brain. The systems are certainly not functionally comparable to the human brain, but they do follow the pattern of learning by example. In the case of Airbnb, one model focuses specifically on the risk of parties, while another focuses on property damage, for instance.
“When we started looking at the data, we found that in most cases, we were noticing that these were bookings that were made extremely last-minute, potentially by a guest account that was created at the last minute, and then a booking was made for a potential party weekend such as New Year’s Eve or Halloween, and they would book an entire home for maybe one night,” Banerjee told CNBC. “And if you looked at where the guest actually lived, that was really in close proximity to where the listing was getting booked.”
After the models do their analysis, the system assigns every reservation a party risk. Depending on the risk tolerance that Airbnb has assigned for that country or area, the reservation will either be banned or greenlit. The team also introduced “heightened party defenses” for holiday weekends such as the Fourth of July, Halloween and New Year’s Eve.
Source: Airbnb
In some cases, like when the right decision isn’t quite clear, reservation requests are flagged for human review, and those human agents can look at the message thread to gauge party risk. But the company is also “starting to invest in a huge way” in large language models for content understanding, to help understand party incidents and fraud, Banerjee said.
“The LLM trend is something that if you are not on that train, it’s like missing out on the internet,” Banerjee told CNBC.
Banerjee said her team has seen a higher risk of parties in the U.S. and Canada, and the next-riskiest would probably be Australia and certain European countries. In Asia, reservations seem to be considerably less risky.
The algorithms are trained partly on tickets labeled as parties or property damage, as well as hypothetical incidents and past ones that occurred before the system went live to see if it would have flagged them. They’re also trained on what “good” guest behavior looks like, such as someone who checks in and out on time, leaves a review on time, and has no incidents on the platform.
But like many forms of AI training data, the idea of “good” guests is ripe for bias. Airbnb has introduced anti-discrimination experiments in the past, such as hiding guests’ photos, preventing hosts from viewing a guest’s full name before the booking is confirmed, and introducing a Smart Pricing tool to help address earnings disparities, although the latter unwittingly ended up widening the gap.
Airbnb said its reservation-screening AI has been evaluated by the company’s anti-discrimination team and that the company often tests the system in areas like precision and recall.
Going global
Courtesy: Airbnb
Almost exactly one year ago, Banerjee was at a plant nursery with her husband and mother-in-law when she received a call from Airbnb CEO Brian Chesky.
She thought he’d be calling about the results of the Australia pilot program, but instead he asked her about trust in the platform. Given all the talk she did about machine learning models and features, she recalled him asking her, would she feel safe sending one of her college-bound kids to stay at an Airbnb – and if not, what would make her feel safe?
That phone call ultimately resulted in the decision to expand Banerjee’s team’s reservation screening AI worldwide the following spring.
Things kicked into high gear, with TV spots for Banerjee, some of which she spotted in between pull-ups on the gym television. She asked her daughter for advice on what to wear. The next thing she knew, the team was getting ready for a live demo of the reservation screening AI with Chesky. Banerjee was nervous.
Last fall, the team sat down with Chesky after working with front-end engineers to create a fake party risk, showing someone booking an entire mansion during a holiday weekend at the last minute and seeing if the model would flag it in real-time. It worked.
Chesky’s only feedback, Banerjee recalled, was to change the existing message – “Your reservation cannot be completed at this point in time because we detect a party risk” – to be more customer-friendly, potentially offering an option to appeal or book a different weekend. They followed his advice. Now, the message reads, “The details of this reservation indicate it could lead to an unauthorized party in the home. You still have the option to book a hotel or private room, or you can contact us with any questions.”
Over the next few months, Banerjee remembers a frenzy of activity but also feeling calm and confident. She went to visit her family in India in April 2023 for the first time in about a year. She told her father about the rollout excitement, which happened in batches the following month.
This past Labor Day, Banerjee was visiting her son in Texas as the algorithm blocked or redirected 5,000 potential party bookings.
But no matter how quickly the AI models learn, Banerjee and her team will need to continue to monitor and change the systems as party-inclined users figure out ways around the barriers.
“The interesting part about the world of trust and safety is that it never stays static,” Banerjee said. “As soon as you build a defense, some of these bad actors out there who are potentially trying to buck the system and throw a party, they will get smarter and they’ll try to do something different.”
A Thanksgiving week rally couldn’t put all three major indexes in the green for November. The S & P 500 gained nearly 4% for the week, while the Dow Jones Industrial Average added more than 3% — a strong enough showing for each to eke out gains for the month. It extends their streak of winning months to seven. And while the Nasdaq Composite ended the week higher by more than 4%, it wasn’t enough to overcome selling earlier in the month triggered by valuation concerns about the artificial intelligence trade. The tech-heavy Nasdaq fell roughly 2% in November, ending its seven-month winning streak. .SPX YTD mountain S & P 500 (SPX) year-to-date performance There were a couple of bright spots in our portfolio during the holiday-shortened trading week. Apple shares notched three consecutive all-time highs this week, starting on Monday and ending on Wednesday. The stock has been buoyed by positive demand signs for Apple’s iPhone 17 series. Counterpoint Research data on Wednesday showed that Apple is on track to dethrone Samsung as the world’s top smartphone maker this year — an achievement the iPhone maker hasn’t seen in over a decade. Overall, Counterpoint analysts expect Apple to capture 19.4% of the global smartphone market in 2025, compared with Samsung’s expected 18.7%. The stock rose further on Friday, closing the week with a nearly 3% gain. Broadcom secured all-time record closes during every trading session this week. The stock’s been up as Wall Street starts to see the chipmaker as an ancillary play to Alphabet ‘s growing AI dominance. As Google began rolling out its latest AI model, investors see benefits for Broadcom as a co-designer of its specialized chips, called tensor processing units (TPUs). Media reports earlier in the week of Meta Platforms considering Google’s TPUs for its data centers in 2027 added fuel to Broadcom’s run. That’s because Alphabet’s AI expansion could drive more sales for Broadcom’s crucial networking and custom chips businesses, which was a key reason the Club started a position in the stock. Shares of Broadcom advanced more than 18% week to date. Fellow chipmaker Nvidia went the other way, with shares hitting a nearly three-month low on Tuesday as those same reports highlighted how some big tech companies are looking for alternatives to Nvidia’s chips. But Jim Cramer recommended staying the course , and called the stock dip a buying opportunity for new investors. After all, Nvidia still dominates the extremely lucrative AI chip market. “The demand is insatiable for Nvidia,” Jim said Tuesday. Shares fell 1% week to date. NVDA YTD mountain Nvidia (NVDA) year-to-date performance And while we didn’t see any earnings from the portfolio this past week, Dick’s Sporting Goods ‘ quarterly report was great news for Club holding Nike . Jim called the retail stock a buy on Tuesday after Dick’s announced plans to close several Foot Locker locations during its third-quarter earnings call. “Nike is a buy off of Dick’s problems,” Jim said. Management’s remarks indicated that Nike’s relationship with the retail giant has been improving, a positive sign for Nike’s turnaround story. “They’re moving in the right direction,” Ed Stack, executive chairman of Dick’s Sporting Goods, told “Squawk on the Street,” after the company’s earnings were released. He cited a strong performance from Nike’s running line. “If you take a look at what they did with their running construct, what they did with Pegasus, what they did with Vomero, what they did with Structure, this running concept has done extremely well on the Dick’s side, and where it’s been put into Foot Locker stores, it’s done really well there too.” Nike stock jumped nearly 3% week to date. NKE YTD mountain Nike (NKE) year-to-date peformance Trades Finally, we executed two trades during the shortened holiday trading week. On Monday, the Club bought more Palo Alto Networks shares on the cybersecurity company’s overblown post-earnings decline. We saw the weakness as an opportunity, given that Palo Alto delivered a beat-and-raise third quarter that topped estimates for every single key metric. The Nov. 19 report showed that momentum in Palo Alto’s “platformization” strategy of bundling its products and services remains promising. Deals from Palo Alto make us even more bullish on the stock. The company announced plans to buy cloud management and monitoring company Chronosphere for $3.35 billion. Management’s acquisition of identity-security leader CyberArk was approved by shareholders on Nov. 13 and is expected to close in the third quarter of fiscal year 2026. “Palo Alto Networks is setting itself apart in the AI era by adding two platforms just as their respective markets hit key inflection points,” Jeff Marks, the Investing Club’s director of portfolio analysis, wrote in a trade alert. We added to our Procter & Gamble position on Tuesday, our second purchase of the consumer goods giant since starting a position on Nov. 18. The thesis: Shares will benefit from any rotation out of Big Tech and into more economically resilient companies. Basically, if AI spending lets up or the U.S. economy slows down, defensive stocks like P & G should shine. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
CEO of Palantir Technologies Alex Karp attends the Pennsylvania Energy and Innovation Summit, at Carnegie Mellon University in Pittsburgh, Pennsylvania, U.S., July 15, 2025.
Shares of the software analytics provider dropped 16% for their worst month since August 2023 as investors dumped AI stocks due to valuation fears. Meanwhile, famed investor Michael Burry doubled down on the artificial intelligence trade and bet against the company.
Palantir started November off on a high note.
The Denver-based company topped Wall Street’s third-quarter earnings and revenue expectations. Palantir also posted its second-straight $1 billion revenue quarter, but high valuation concerns contributed to a post-print selloff.
In a note to clients, Jefferies analysts called Palantir’s valuation “extreme” and argued investors would find better risk-reward in AI names such as Microsoft and Snowflake. Analysts at RBC Capital Markets raised concerns about the company’s “increasingly concentrated growth profile,” while Deutsche Bank called the valuation “very difficult to wrap our heads around.”
Adding fuel to the post-earnings selloff was the revelation that Burry is betting against Palantir and AI chipmaker Nvidia. Burry, who is widely known for predicting the housing crisis that occurred in 2008 and the portrayal of him in the film “The Big Short,” later accused hyperscalers of artificially boosting earnings.
Palantir CEO Alex Karp vocally hit the front lines, appearing twice in one week on CNBC, where he accused Burry of “market manipulation” and called the investor’s actions “egregious.”
“The idea that chips and ontology is what you want to short is bats— crazy,” Karp told CNBC’s “Squawk Box.”
Despite the vicious selloff, Palantir has notched some deal wins this month. That included a multiyear contract with consulting firm PwC to speed up AI adoption in the U.K. and a deal with aircraft engine maintenance company FTAI.
But those announcements did little to shake off valuation worries that have haunted all AI-tied companies in November.
Across the board, investors have viciously ditched the high-priced group, citing fears of stretched valuations and a bubble.
In November, Nvidia pulled back more than 12%, while Microsoft and Amazon dropped about 5% each. Quantum computing names such as Rigetti Computing and D-Wave Quantum have shed more than a third of their value.
Apple and Alphabet were the only Magnificent 7 stocks to end the month with gains.
Sill, questions linger over Palantir’s valuation, and those worries aren’t a new concern.
Even after its steep price drop, the company’s stock trades at 233 times forward earnings. By comparison, Nvidia and Alphabet traded at about 38 times and 30 times, respectively, at Friday’s close.
Karp, who has long defended the company, didn’t miss an opportunity to clap back at his critics, arguing in a letter to shareholders that the company is making it feasible for everyday investors to attain rates of return once “limited to the most successful venture capitalists in Palo Alto.”
“Please turn on the conventional television and see how unhappy those that didn’t invest in us are,” Karp said during an earnings call. “Enjoy, get some popcorn. They’re crying. We are every day making this company better, and we’re doing it for this nation, for allied countries.”
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Here are five key things investors need to know to start the trading day:
1. Down and out
Stock futures trading was halted this morning after a data center “cooling issue” took down several Chicago Mercantile Exchange services. Individual stocks were still trading before the bell, while the CME said futures indexes and options trading would open fully at 8:30 a.m. Follow live markets updates here.
The stock market has rebounded during the holiday-shortened trading week. But the three major indexes are still on pace to end November’s trading month — which ends with today’s closing bell — in the red. The Dow and S&P 500 are poised to snap six-month winning streaks, while the Nasdaq Composite is on track to see its first negative month in eight.
Today’s trading session ends early at 1 p.m. ET.
2. Shopping and dropping
A Black Friday sale sign is displayed in a shop window at an outlet mall in Carlsbad, California, U.S., Nov. 25, 2025.
Mike Blake | Reuters
Black Friday was once considered the biggest in-person shopping day of the year, drawing huge crowds to stores in search of bargains. But while millions are still expected to partake in the occasion, it’s not what it used to be.
Here’s what to know:
In the past six years, online sales have outpaced brick-and-mortar spending on Black Friday. Data shows in-person foot traffic has been mostly flat over the last few years, as well.
No matter where they make their purchases, shoppers are also skeptical that they’re getting the best deals.
As CNBC’s Gabrielle Fonrouge reports, the shift has meant a change in strategy for many of the retail industry’s biggest names. Some have started offering their holiday sales earlier in the season, while others are spacing out their promotions.
Deloitte reported that the average consumer will shell out $622 between Nov. 27 and Dec. 1, a decrease of 4% from last year.
Even as the day of deals loses its allure, AT&T found that Gen Z participates the most, while their older counterparts do their shopping closer to Christmas.
3. AI comeback
Cfoto | Future Publishing | Getty Images
Alphabet has been a notable exception to the recent tech downturn. Shares of the Google parent have surged more than 13% this month as Wall Street sees the company as an AI leader.
Alphabet began the month by announcing its latest tensor processing units, or TPUs, called Ironwood. Last week, the company launched its latest AI model, Gemini 3, which caught positive attention from Silicon Valley heavyweights.
Shares of the stock are now up close to 70% this year, making it the best-performer within megacap tech. But experts told CNBC’s Jennifer Elias that Alphabet’s lead in the competitive AI market is marginal and could be hard to hold onto.
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4. Tech’s tug of wars
Alibaba announced plans to release a pair of smart glasses powered by its AI models. The Quark AI Glasses are Alibaba’s first foray into the smart glasses product category.
Alibaba‘s AI-powered smart glasses went on sale yesterday. With its new wearable tech offering, the Chinese tech company is going up against major players — namely Meta, which unveiled its smart glasses with Ray Ban in September.
Meanwhile, Counterpoint Research found Apple is poised to ship more smartphones than Samsung this year for the first time in 14 years. Apple is also poised to boast a larger market share, driven by strong iPhone 17 sales.
5. From Seoul to Los Angeles
Carly Xie looks over facial mask items at the Face Shop, which specializes in Korean cosmetics, in San Francisco, April 15, 2015.
Avila Gonzalez | San Francisco Chronicle | Hearst Newspapers | Getty Images
American shoppers are increasingly looking to South Korea for their cosmetics. NielsenIQ found U.S. sales of so-called “K-beauty” products are slated to surge more than 37% this year to above $2 billion.
Retailers ranging from beauty product hubs Ulta and Sephora to big-box chains Walmart and Costco are jumping on the trend. On top of that, Olive Young — aka the “Sephora of Seoul” — is opening its first U.S. store in Los Angeles next year.
The Daily Dividend
Here are some stories worth circling back to over the weekend:
— CNBC’s Chloe Taylor, Gabrielle Fonrouge, Laya Neelakandan, Jessica Dickler, Sarah Min, Sean Conlon, Jennifer Elias, Arjun Kharpal and Luke Fountain contributed to this report. Josephine Rozzelle edited this edition.