The founder of Circle Squared Alternative Investments explains why the travel booking company’s second quarter earnings report is so important to “Varney & Co.”
Airbnb reported record third-quarter profit of $1.21 billion as bookings and average daily rates rose, and the company said on Tuesday demand for short-term rentals remained strong despite economic uncertainty .
However, earnings were still below Wall Street expectations and the company said booking growth would slow in the fourth quarter, while average daily rates would also come under pressure.
SPAIN – 2021/04/15: In this photo illustration the Airbnb app displayed on a smartphone screen with the Airbnb website displayed on a laptop computer in the background. (Photo Illustration by Thiago Prudencio/SOPA Images/LightRocket via Getty Images) (Thiago Prudencio/SOPA Images/LightRocket via Getty Images/Getty Images)
JETBLUE OPTIMISTIC FOR HOLIDAY TRAVEL AFTER REACHING RECOVERY “MILESTONE”
Airbnb shares fell 4% in extended trading.
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UBER STOCK INCREASES AFTER QUARTERLY RESULTS REPORT ANNOUNCES 72% REVENUE GROWTH
Third-quarter profit, compared with $834 million in the same quarter last year, was $1.22 per share. Analysts were expecting $1.47 per share, according to a FactSet survey.
Revenue jumped 29% from a year earlier to $2.88 billion, slightly above analysts’ forecast of $2.85 billion.
Airbnb is a popular choice for many travelers, but as inflation continues, many investors fear travel will suffer, and so will Airbnb.
Airbnb shares have fallen nearly a third this year despite the travel recovery, a highly profitable first half and continued upbeat comments from CEO Brian Chesky and other business leaders.
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Most of the share price decline has occurred since early May. Investors fear that rising prices for basic commodities, including housing, food and gasoline – as well as fear of recession – will push consumers to cut back on discretionary spending like travel.
. Airbnb records profit billion dollars quarter so its revenue jump