Airbnb shares (ABNB.O) plummeted more than 8% in pre-market trading on Thursday following disappointing second-quarter forecasts, sparking concerns among investors about slowing growth at the vacation rental firm despite a strong quarterly profit beat.
Factors such as the Easter holiday occurring in the first quarter instead of the second and currency-exchange impacts contributed to Airbnb’s projection of lower-than-expected revenue for the current quarter. Additionally, the company anticipated a relatively flat growth rate in room nights booked sequentially, although the average daily rate is expected to be slightly higher year-over-year.
Despite gains earlier in the year, Airbnb shares were trading significantly below their forward profit estimates compared to competitors like Booking Holdings (BKNG.O), indicating apprehension among investors regarding the company’s future performance.
Source: Reuters