Airbnb Inc. shares plunged by the most ever after the company issued yet another disappointing outlook and warned of slowing demand from US vacationers. Bookings rose 8.
7% in the second quarter to 125.1 million, falling well below analysts’ estimates. And Airbnb said it expects “sequential moderation” of growth in bookings in the third quarter, too, signaling that results will disappoint analysts who had projected an 11% gain amid the peak summer travel season.
This is the third consecutive quarter that Airbnb has offered a downbeat forecast to investors. The company’s latest bookings outlook sets it up for the slowest pace of growth since 2020. Even as the pandemic retreats, headwinds have dogged the broader industry.
Last week, Booking Holdings Inc. gave worse-than-expected guidance, blaming “mild moderation” in the European travel market and consumers who are opting for lower-star hotels and shorter stays, particularly in the US. Airbnb’s shares slid as much as 15.
4% on Wednesday, their biggest intraday drop since the company went public in December 2020. Airbnb’s outlook “will likely only further stoke the soft consumer thesis,” RBC Capital Markets analysts led by Brad Erickson said in a note, calling the company’s report disappointing. For its part, Airbnb said it’s “seeing shorter booking lead times globally and some signs of slowing demand from US guests.
” Latin America and Asia Pacific continue to be its fastest-growing regions, the company.