Airbnb Q2: Analysts Expect Smooth Sailing As Travel Market Rebounds, Performance Update After Major App Redesign

Last week, Booking.com posted better-than-expected quarterly sales, driven by strong international demand.

Investors will be watching closely for signs of momentum from Airbnb's revamped app and new services when the online travel platform reports its second-quarter earnings after the market closes on Wednesday.

Airbnb, led by Rhode Island School of Design graduate Brian Chesky, fully upgraded its app's user interface and experience, and introduced new offerings such as tour experiences and home services last month. To be sure, the earnings for the quarter ended June 30 would not reflect the impact of the redesign.

So far as Airbnb's core business is concerned, analysts say that the travel and tourism market, and with that online travel, is rebounding.  

The operating backdrop is ultimately not as dire as expected post- "Liberation Day", and while there is some regional softness in the U.S. inbound, consumer appetite for travel to other destinations appears unabated, UBS said in a recent note.

Morgan Stanley and Barclays also noted more favourable trends in the online travel space, including encouraging signals from domestic airlines.

Last week, Booking.com (BKNG) posted better-than-expected quarterly sales, driven by strong international demand, particularly from affluent Chinese travelers exploring destinations across Asia.

On Stocktwits, the retail sentiment for ABNB shifted to 'bullish' as of early Wednesday, with shares rising 1% in premarket trading. Airbnb shares have fallen sharply, down 8%, since July 29, and a couple of retail investors on Stocktwits have stated that they are buying the stock ahead of the earnings report.

Analysts expect Airbnb's revenue to rise 10.3% to $3 billion, and adjusted earnings to increase 9.4% to $0.94 per share, according to Koyfin data.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<