Wednesday that the earnings from the previous quarter didn’t meet expectations and saw a drop in demand from U.S. customers.
It seems like the Airbnb Stock price is struggling in 2024 but the CEO Brian Chesky stated "We're watching these trends closely, along with the impact any macroeconomic pressures might be causing"
According to LSEG, the online rental platform was expected to meet some estimates but failed, and here’s how the Airbnb earnings looked at the end of June. For earnings per share, Airbnb recorded 85 cents vs. 92 cents as estimated by LSEG. For Airbnb earnings revenue, the company recorded a higher price than expected, $2.75 billion in revenue vs. $2.74 billion expected.
For the third quarter of 2024, the rental company aims to record revenues of $3.67 billion to $3.73 billion, and also hopes to have a year-over-year growth in their key category “Nights and Experiences”. However, their expectations need to be as close to reality because of a fall in demand from U.S. customers.
It’s not yet clear why fewer Americans are interested in booking a place to stay through the Airbnb platform but surely the raised costs caused by inflation play a role in the periodic changes of the Airbnb stock price.
In a letter addressed to stakeholders, Airbnb stated that its highest second-quarter result is that around 125.1 million Nights and Experiences were booked by users. “We saw continued growth across all regions compared to Q2 2023, with Asia Pacific and Latin America again leading the way”.
The Airbnb “Nights and Experiences” are based on events like tours, sightseeing excursions, restaurant or bar visits, and stays in some special locations like for example the Ferrari Museum.
The online rental platform also stated that since they launched a ”quality system” focused more on high-quality listings, they removed more than 200,000 listings that didn’t meet the standards and that could generate low ratings in the Airbnb system.
Besides all the Airbnb earnings which seem to record growth, the Airbnb stock doesn’t look very promising, as the company records one fall after another. We are sure that Airbnb had better days and these earnings are not permanent, but something is happening for the rental company.
For now, we wait for the third-quarter earnings results to come out to see how the Airbnb stock price will fluctuate.
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