Airbnb Stock Falls Despite Earnings Beat, Analyst Focus Remains on Demand
Investing.com
Published Aug 03, 2022 07:00AM ET
Updated Aug 03, 2022 07:17AM ET
Airbnb (ABNB) Stock Falls Despite Earnings Beat, Analyst Focus Remains on Demand
By Senad Karaahmetovic
Shares of Airbnb (NASDAQ:ABNB) are down almost 7% in premarket trading Wednesday after the company said it expects growth to remain stable even though travel demand is skyrocketing.
ABNB reported Q2 EPS of 56c, compared to a loss per share of 11c in the year-ago period. The company’s Q2 revenue stood at $2.10 billion, in line with the consensus estimates.
Airbnb reported 103.7 million nights and experiences bookings, missing the consensus projection of 106 million.
For Q3, the company expects revenue to be in the range of $2.78 billion to $2.88 billion, beating the estimates of $2.78 billion. Airbnb said it expects Q3 Nights and Experiences Booked to remain stable relative to the year-ago period.
The company also expects slightly higher ADRs in Q3 relative to the same quarter last year, which should lead to a brief GBV growth. The San Francisco-based company expects Q3 EBITDA margin to match or be just below the last year’s all-time high of 49%.
Airbnb announced a $2 billion share repurchase program, saying the company remains very confident in its long-term growth and profitability prospects.
A Citi analyst cut the price target to $140 from $160 but remained Buy-rated on share gains in lodging.
“While we are watching 3Q demand trends, our thesis on ABNB remains unchanged and we reiterate our Buy rating, though lower our target price to $140 from $160 prior to account for potential macro headwinds,” the analyst said.
A Stifel analyst saw “healthy” results from Airbnb.
“Despite encouraging margin progress, we believe visibility into 2H/2023 growth is impaired by macro uncertainty and the potential for normalizing travel demand. We remain Hold rated with a $125 PT,” the analyst wrote in a note.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.