Skip to content

Airbnb slides 7% premarket despite posting record-breaking Q2 earnings

Airbnb slides 7% premarket despite posting record-breaking Q2 earnings
Dino Kurbegovic

Airbnb (NASDAQ: ABNB) shares dropped in the after-hours trading sessions on August 2 by over 6%, following what seemed like a solid earnings report. The online accommodation provider saw revenue jump by 57.6% to $2.1 billion and posted earnings per share (EPS) of $0.56.

On Wall Street, expectations were $0.52 EPS and $2.1 billion in revenue. Equally important, the management of the company, in a letter to shareholders, said that this quarter was the most profitable one on record for the firm. 

“From a profitability perspective, we had our most profitable Q2 ever with net income of $379M—a nearly $700M improvement from Q2 2019. We generated $795M of FCF in the quarter—a nearly $1.1B improvement from the -$263M FCF from the depths of the pandemic two years ago.”

ABNB premarket data. Source: Nasdaq

Further, the letter mentioned that the firm has almost $10 billion cash on hand, thus approving a $2 billion share repurchase program

Airbnb posts strong guidance

Additionally, guidance given for the third quarter seemed as a continuation of the positive momentum seen during Q2, as the highest revenue in its history is expected along with stable and increased bookings. 

“In Q3 2022, we anticipate the highest quarterly revenue in Airbnb history. We expect to deliver Q3 2022 revenue between $2.78 billion and $2.88 billion, representing year-over-year growth of between 24% and 29%, and a 69% to 75% increase relative to 2019.”

ABNB chart and analysis

In the run-up to the earnings, since July 14, the shares gained over 27%; however, a cumulative drop of 10% in yesterday’s session might look to pare back those gains. Overall, the short-term trend still remains positive, while the long-term is negative, with the shares trading in a range between $90.17 and $117.78, over the past month. 

Right now, the stock is down 6.74% in premarket trading, with the support zone ranging from $108.14 to $108.50, and the resistance line at $142.95.

ABNB  20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

Travel stocks seem to be performing well, with the release of pent-up demand boosting the share prices of most travel companies.

Inflationary worries have some investors fleeing the travel names, but on the whole, the sentiment should improve the moment inflation starts slowing or reversing; until then, investors should exercise caution. 

Buy stocks now with Interactive Brokers – the most advanced investment platform


Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Services

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.