Stock Story -
What Happened: Shares of online accommodations platform Airbnb (NASDAQ:ABNB) fell 16.6% in the morning session after the company reported second-quarter earnings results. Its bookings missed and its revenue guidance for next quarter missed Wall Street's estimates. The company said that "...we are seeing shorter booking lead times globally and some signs of slowing demand from U.S. guests." On the other hand, revenue beat slightly, and adjusted EBITDA beat by a more convincing amount. Overall, this was a mixed but weaker quarter for Airbnb.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Airbnb? Find out by reading the original article on StockStory, it's free.
What is the market telling us: Airbnb's shares are very volatile and over the last year have had 9 moves greater than 5%. But moves this big are very rare even for Airbnb and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 3 months ago, when the stock dropped 9.5% on the news that the company reported first-quarter results. It provided revenue guidance for the next quarter below analysts' expectations, and its revenue growth slowed. On the other hand, Airbnb beat analysts' revenue and adjusted EBITDA expectations. It also expanded its number of bookings. Overall, this was a mixed quarter for Airbnb.
Airbnb is down 17.1% since the beginning of the year, and at $111.56 per share it is trading 33.7% below its 52-week high of $168.18 from March 2024. Investors who bought $1,000 worth of Airbnb's shares at the IPO in December 2020 would now be looking at an investment worth $770.58.
