Airbnb Shares Slide Over 7% as Slower Growth Outlook Raises Travel Demand Concerns

Airbnb shares dropped more than 7% on Thursday after the company projected slower growth for the second half of the year, sparking renewed concerns about a potential slowdown in travel demand.

Credit: airbnb

The forecast disappointed investors who had anticipated a rebound in the sector, especially following strong outlooks from major travel firms.

Airbnb cited tough comparisons with the previous year, when strong bookings in Asia and Latin America had boosted earnings. The company now expects night bookings growth to moderate year-over-year into the fourth quarter.

Credit: airbnb

It also forecast that its implied take rate—the ratio of revenue to gross bookings—will remain flat in the third quarter.

Danni Hewson, Head of Financial Analysis at AJ Bell, said Airbnb sees tariffs affecting margins in the third quarter, with the initial tariff shock in April causing a significant drop in bookings.

The outlook contrasts with recent forecasts from United Airlines and Hilton Worldwide, which both predicted an increase in bookings and strong fourth-quarter revenue growth.

Last week, an online travel agency also reported positive quarterly results, adding to expectations of a sector rebound.

Investors are now turning their attention to Expedia Group’s upcoming earnings report to further assess the health of the U.S. travel industry.

So far this year, shares of both Airbnb and Expedia have declined 0.6%, while Booking Holdings has gained 11.4%.

Airbnb currently trades at a forward price-to-earnings multiple of 28.41, higher than Booking’s 22.69 and Expedia’s 11.57.

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• Airbnb shares fell over 7% after forecasting slower growth

• Company expects night bookings growth to moderate in Q4

• Tariffs cited as a factor impacting margins and bookings

Source: REUTERS