Airbnb’s reputation and stock took a hit on Thursday after short-seller The Bear Cave published an unfavorable report about the company. In the report, The Bear Cave alleges poor customer experience on the platform and increasing direct competition from its top hosts.
The report detailed various stories and incidents that happened to guests at Airbnbs run by individuals, like last-minute cancellations, cleaning requirements, and surveillance. These “scandals and horror stories” reportedly prompted Airbnb to focus on the platform’s “professionally managed properties” in a move that is now backfiring.
According to The Bear Cave, many of the hosts behind professionally managed properties have now started using other platforms in an attempt to cut Airbnb out.
“In short, Airbnb’s future will look a lot different than its past as the company will now need to compete against its best and largest hosts,” says the report.
The report apparently didn’t sit well with the investors, and it reflected on Airbnb’s shares almost immediately. After closing at $115.34 per share on Wednesday, the company’s stock was down as much as six percent at one point on Thursday. Still, the shares of Airbnb are still almost 30 percent up since the start of the year.