HomeIndustriesAirbnb Shares Slide Amid Waning Travel Demand

Airbnb Shares Slide Amid Waning Travel Demand

Airbnb Inc. shares fell on Tuesday after the vacation rental company delivered an unoptimistic revenue forecast for the second quarter. The company suggested that rising prices and a bearish economic outlook have deterred consumers from leisure travel.

Shares fell by 10% to $114.25. This is a significant backtrack for Airbnb, with the company gaining almost 50% since the start of the year. While the company benefitted from shifts in work and travel trends during Covid, the post-pandemic travel boom has since faded.

The company has forecast revenue of $2.35 billion to $2.45 billion for the quarter ending June; an increase of 12% to 16% from the previous year. According to a Bloomberg survey, industry analysts had been expecting revenue of $2.4 billion.

News of Airbnb’s reduced economic outlook comes after a solid first-quarter performance in which the company set several performance records. Adjusted earnings before taxes for the three months ending March 31 was $262 million; a record first-quarter performance that smashed Wall Street estimates.

Revenue for the first quarter stood at $1.82 billion, thereby beating analysts’ estimates of $1.79 billion and setting another first-quarter record as well as a 20% rise from the previous three months.

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