Airbnb slumps as gloomy forecast fans slowdown fears
Airbnb shares tumbled more than 8 per cent premarket on Thursday after weak forecasts for the second quarter stoked investor fears about slowing growth at the vacation rental firm and took the shine off a strong quarterly profit beat.
The Easter holiday occurring in the first quarter rather than the second and currency-exchange impacts were partly to blame for Airbnb projecting currentquarter revenue below lofty Wall Street estimates.
It also forecast the growth rate of room nights booked would be relatively flat on a sequential basis, but the company’s average daily rate is expected to be modestly higher year-overyear.
Moderating leisure travel demand in the U.S. has also been a concern for investors.
“Airbnb failed to deliver a beat/raise on nights, which we believe was necessary to ease concerns about slowing growth and risk of downside to consensus estimates for accelerating growth in (the second half of 2024 and in 2025),” Jefferies analysts said.