Fall in Airbnb Stocks After the Company Forecasts Revenue Slowdown in 2023
By Snehal Singh , 16 May, 2023
Airbnb (ABNB), a service that lets property owners rent out their spaces to travellers , observe a fall , fall in its stocks as it expects bookings and average rates of stocks to decline in the second quarter of 2023 when compared to 2022.
In the company's earnings call, the second quarter of 2023 turned out to be a bit tough competition to the stock rates in 2022. But the company is focusing overall on the stable demand for the rest half, as said by Airbnb's CFO.
The Airbnb stock also fell as much as 15 percent in the pre-market trade in May 2023. If we compare the impressive numbers from the company’s earnings report and Wall Street’s expectations as compiled by Bloomberg, the revenue scales up to USD 1.8 billion versus USD 1.79 billion estimated, and the Earnings Per Share (EPS) is 18 cents versus 12 cents estimated. Also, the second quarter revenue guides somewhere between USD 2.35 billion to USD 2.45 billion versus USD 2.42 billion as per the estimation. Airbnb announced a new USD 2.5 billion stock buyback.
Airbnb's CEO said that the company's price-sensitive customers are primarily based in North America, particularly in the United States. The company expects that Airbnb rates should continue to normalize. Hopefully, the rates should not increase as fast as hotels since the company expects to see continued occupancy growth for more Airbnb listings in the next two years.
The company is looking ahead to host supply, for which it is trying to raise awareness around hosting to make it easier to initiate and have better tools for the hosts. Also, the company is looking forward to spending more on the first half of 2023 than 2022.
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