Airbnb (NASDAQ:ABNB) stock fell hard after second-quarter results were deemed disappointing. The company also warned of a slowdown in demand.
Airbnb said it earned , on revenue of $2.75 billion for the three months ending in June.
What most troubled investors was the company’s guidance for revenue of around .
ABNB stock opened at about $112 per share, down 14% from its Aug. 6 closing price. It last traded at this level in late November 2023.
Trouble at Airbnb
Airbnb has been drawing criticism from some consumers for high cleaning fees and hosts demanding . Others are also worried about security cameras, which . A CNN investigation also claimed management than the customer experience.
CEO and co-founder Brian Chesky hopes to . The company is launching “co-hosting,” where homeowners rent out their places through third parties. It will also a tour offering it previously placed on pause.
Analysts were already skeptical about Airbnb . Of the 35 following the stock at TipRanks, 21 had it in the “hold” category, with five telling investors to sell it. Traders at Stocktwits are also . One joked after the earnings report that investors
Airbnb came public in December 2020. Private equity investors earned . The stock doubled on its first day of trading, ending at $144 per share. It’s now down 22% from that closing price.
ABNB Stock: What Happens Next?
Investors tempted to “buy the dip” are asking whether the Airbnb business model is broken. It’s Chesky’s job to convince them otherwise.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor held a LONG position in ABNB.
