Airbnb Inventory Falls as Second-Quarter Outcomes Miss Income Estimates a Little

Airbnb stock fell on Wednesday after reporting second-quarter results that beat earnings but missed slightly on revenue.

Airbnb (ABNB) also announced a $2 billion stock buyback program.




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Late Tuesday, the rental accommodation provider reported adjusted earnings of 56 cents a share on revenue of $2.1 billion. Wall Street had expected Airbnb to report earnings of 45 cents a share on revenue of $2.11 billion, according to FactSet.

Airbnb Stock Action

Airbnb stock fell 1.1%, closing at 115.02 on the stock market today. Airbnb stock has an RS Rating of only 22 out of a possible 99. Its EPS Rating is 69.

The company reported more than 103 million nights and experiences booked, the highest quarterly number ever, but short of estimates.

Airbnb reported gross bookings of $17 billion, up 27% from the year-ago period.

The company is booming as consumers shift their spending from goods to services. Consumers are eager to travel after being cooped up at home during the pandemic.

Travel Boom To Continue

San Francisco-based Airbnb expects the travel boom to continue. It guided for third-quarter revenue in the range of $2.78 billion to $2.88 billion, below Wall Street’s estimate of $2.77 billion.

Despite more people returning to the office for work, Airbnb’s long-term stays, where guests stay in a home for 28 days or more, remain Airbnb’s fastest growing segment, with 25% growth vs. a quarter of a year ago.

While Airbnb stock is trading above a 50-day moving averagehe has a poor IBD Composite Rating of 38 out of a possible 99.

Follow Brian Deagon on Twitter at @IBD_BDeagon for more on technology stocks, analysis and financial markets.

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