Airbnb shares are on track for the biggest decline on record 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, signalling that results will disappoint analysts who had projected an 11% gain amid the peak summer travel season.
The companys forecast 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 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.
Airbnbs outlook will likely only further stoke the soft consumer thesis, RBC Capital Markets analysts led by Brad Erickson said in a note, calling the companys report disappointing.
Airbnbs shares plunged by more than 16% in premarket trading early Wednesday. If the declines hold, the stock will notch its largest-ever intraday drop.
