Stock market today: S&P 500 extends monthly win streak despite Nvidia-led stumble
Investing.com -- Airbnb (NASDAQ:ABNB) reported second-quarter earnings and revenue ahead of Wall Street expectations, but shares slipped in premarket U.S. trading on Thursday as analysts had a lukewarm reaction to its current-quarter room night growth guidance.
The online accommodation booking platform posted earnings of $1.03 per share for the second quarter, beating analysts’ forecasts of $0.93. Revenue rose to $3.1 billion, compared with expectations of $3.03 billion.
For the third quarter, Airbnb said it expects revenue between $4.02 billion and $4.1 billion, versus projections of $4.05 billion.
The company also announced a fresh $6 billion stock repurchase authorization. Airbnb had repurchased $2.5 billion in stock over the past year.
Growth of nights booked each month during the quarter ended in June accelerated, thanks in part to resilient domestic U.S. travel in the face of global economic uncertainty. Airbnb and its peers have been banking on an improvement in travel demand, even as President Donald Trump’s has rattled consumer sentiment with his aggressive trade policies.
Still, Airbnb flagged that night bookings growth is anticipated to moderate into the fourth quarter against a year earlier, with the implied take rate -- or ratio of revenue to gross bookings -- seen flat in the third quarter.
In a note, analysts at Barclays (LON:BARC) said the "’relatively stable’ third quarter room night growth was in-line with pre-print consensus but might disappoint some bulls anchoring to a few recent data points on improving domestic lodging trends."
They added: "It isn’t clear to us that there is a ton of conservatism baked in here either, as the positive of accelerating room night growth through the quarter into the third quarter is tempered a bit by tougher comparisons later in the quarter and into fourth-quarter."
(Pratyush Thakur contributed reporting.)