Airbnb Sees Softer Q2 Bookings As Economic Uncertainty Deters US Travelers: Retail Turns Extremely Bearish

Airbnb (ABNB) flagged weakness in the hospitality sector and forecast second-quarter revenue below Wall Street expectations on Thursday.

Shares of the company dropped over 5% in extended trading after the results.

President Donald Trump's trade policy, which has raised the probability of a recession in the U.S., is affecting the behavior of travelers and vacationers.

Given the uncertainty, Airbnb said guests were booking trips closer to the check-in date. 

Airline operator Delta Air Lines (DAL) and Hotel chain Hilton (HLT) have previously indicated that demand has weakened and consumers are in a wait-and-watch mode.

Airbnb said it expects second-quarter revenue of $2.99 billion to $3.05 billion, which is largely below the $3.04 billion analyst estimate from LSEG/Reuters.

It expects the average daily rate, or the rental revenue earned for an occupied room per day, to remain flat and the core profit margin slightly down from a year earlier.

Revenue rose 6% to $2.27 billion in the first quarter, slightly above the estimated $2.26 billion.

However, net income slumped 41.7% to $154 million due to various factors, including higher staff costs, write-downs of certain historical investments, and lower interest income.

On Stocktwits, retail sentiment plummeted to 'extremely bearish' from 'bearish' the day before, while message volume rose to 'extremely high.'

In a lighter vein, a user said they knew the stock would underperform as soon as Ark Investment CEO Cathie Wood bought Airbnb shares.

Wood is infamously known to have sold a big position in Nvidia in 2023, just before a massive AI-driven rally in the server company's shares.

Another user noted the "very quiet and super bearish" tone of the company.

Airbnb stock is down 5.6% year to date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.