Investors Are Selling Airbnb Stock Thursday: What's Going On?

Airbnb Inc ABNB shares are trading lower Thursday on the heels of the company’s first-quarter financial results. The company’s outlook appears to be responsible for the weakness. Here’s a look at what you need to know.

• Q1 Revenue: $2.14 billion, versus estimates of $2.06 billion

• Q1 EPS: 41 cents, versus estimates of 22 cents

Airbnb said its strong revenue results were primarily driven by continued strength in travel demand and the timing of Easter. Gross booking value totaled $22.9 billion, up 12% year-over-year. Nights and Experiences booked came in at 132.6 million, up 9.5% year-over-year. Airbnb also generated $1.9 billion in free cash flow during the first quarter.

The company ended the quarter with $11.1 billion in cash, cash equivalents, short-term investments and restricted cash.

"As we previewed in our Outlook last quarter, year-over-year revenue growth in Q2 2024 will face a significant sequential headwind primarily due to the timing of the Easter holiday, the inclusion of Leap Day in Q1 2024, and the impact of FX rate changes," the company said in a letter to shareholders. 

"Looking ahead to the peak Summer travel season, we are already experiencing robust demand for travel around international events such as the Olympics and Euro Cup. Due in part to the strength of our Summer backlog, we expect year-over-year revenue growth to accelerate in Q3 2024 compared to Q2 2024."

Q2 Guidance: Revenue is expected to be between $2.68 billion and $2.74 billion versus estimates of $2.743 billion, per Benzinga Pro. The company said it expects the year-over-year growth rate of nights booked in the second quarter to be "relatively stable" compared to the first quarter.

Following the company’s quarterly results, Piper Sandler analyst Thomas Champion reiterated Airbnb with a Neutral rating and raised the price target from $145 to $155.

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ABNB Price Action: Airbnb shares were down 7.22% at $146.50 at the time of writing, according to Benzinga Pro.

Photo: Shutterstock.