Airbnb Sees Softer Q2 Bookings As Economic Uncertainty Deters US Travelers: Retail Turns Extremely Bearish
Synopsis
The company’s Q1 revenue missed estimates, and net profit declined due to higher staff costs and write-offs.
Airbnb (ABNB) flagged weakness in the hospitality sector and forecast second-quarter revenue below Wall Street expectations on Thursday.
Shares of the company dropped over 5% in extended trading after the results.
President Donald Trump's trade policy, which has raised the probability of a recession in the U.S., is affecting the behavior of travelers and vacationers.
Given the uncertainty, Airbnb said guests were booking trips closer to the check-in date.
Airline operator Delta Air Lines (DAL) and Hotel chain Hilton (HLT) have previously indicated that demand has weakened and consumers are in a wait-and-watch mode.
Airbnb said it expects second-quarter revenue of $2.99 billion to $3.05 billion, which is largely below the $3.04 billion analyst estimate from LSEG/Reuters.
It expects the average daily rate, or the rental revenue earned for an occupied room per day, to remain flat and the core profit margin slightly down from a year earlier.
Revenue rose 6% to $2.27 billion in the first quarter, slightly above the estimated $2.26 billion.
However, net income slumped 41.7% to $154 million due to various factors, including higher staff costs, write-downs of certain historical investments, and lower interest income.
On Stocktwits, retail sentiment plummeted to 'extremely bearish' from 'bearish' the day before, while message volume rose to 'extremely high.'
In a lighter vein, a user said they knew the stock would underperform as soon as Ark Investment CEO Cathie Wood bought Airbnb shares.
Wood is infamously known to have sold a big position in Nvidia in 2023, just before a massive AI-driven rally in the server company's shares.
Another user noted the "very quiet and super bearish" tone of the company.
Airbnb stock is down 5.6% year to date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.