Why Airbnb Stock Is Down 16% In Wednesday Pre-Market

In Wednesday’s pre-market trading, shares of Airbnb Inc. ABNB plunged by 15.84% following a mixed second-quarter earnings report.

What Happened: The home-sharing giant’s stock was trading at $109.80, a significant drop from its previous close at $130.47, according to Benzinga Pro.

Airbnb’s second-quarter sales of $2.748 billion exceeded the analyst consensus estimate of $2.738 billion, marking a 10.63% increase from the same period last year. However, the company’s quarterly GAAP earnings of 86 cents per share fell short of the analyst consensus estimate of 92 cents, missing the mark by 6.52%.

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The company also reported a 9% year-over-year increase in Nights and Experiences Booked, reaching 125.1 million. This growth, coupled with a modest increase in Average Daily Rate (ADR), drove a gross booking value (GBV) of $21.2 billion for the quarter.

Why It Matters: During the earnings call, Airbnb forecasted a "sequential moderation" in nights and experiences booked for the upcoming quarter. The company points to shorter booking lead times and signs of waning demand from U.S. guests. Despite Latin America and Asia Pacific being Airbnb's fastest-growing regions, CFO Ellie Mertz highlighted a global trend of shorter booking lead times. Mertz attributed this to various factors, including the new COVID variant and the war in Israel.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari