Airbnb has revised its third-quarter revenue forecast downward, leading to a nearly 13% drop in its stock price yesterday. The company cited slowing demand in the U.S. and shorter booking windows as key factors behind the adjustment.
Jefferies reported that Airbnb now expects a 6 to 8% growth rate for the third quarter compared to the same period last year, down from the previously forecasted 8.7%. Analysts from JP Morgan observed a general downturn in travel across Europe and a decline in U.S. travel, suggesting that the normalization of booking windows might negatively impact investor sentiment toward online travel platforms.
Jefferies also highlighted that Airbnb’s “disappointing” forecast for nights booked, relative to its competitor Booking.com, will likely raise concerns about slowing growth.
The U.S. travel market has faced pressure throughout the year as Americans become more cautious with their travel spending amid economic uncertainty. Airbnb noted a global trend of shortening booking lead times, with more consumers opting for last-minute travel plans.
Airbnb’s Chief Financial Officer, Ellie Murtz, pointed out that reducing long booking lead times has significantly affected the company’s outlook.
Baird Equity Research analysts have maintained a neutral stance on Airbnb’s stock, citing emerging evidence that consumers are tightening their budgets or delaying travel plans.
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