© Reuters
Investing.com – Shares of Airbnb fell in U.S. premarket trading on Wednesday after the resort accommodation app signaled it would see a slowdown in booking rates in its current quarter.
In a letter to shareholders, the company said a year-over-year comparison would impact the growth rate of nights booked in its first quarter compared to the prior three-month period. The average daily rate, or ADR, which measures how much hosts charge their guests per day, is also expected to remain stable.
Subsequently, revenue growth is expected to slow to between 12% and 14%, down from a 17% increase in the fourth quarter, a mark that was itself the slowest of any quarter in 2023 despite continued strength in international travel demand and currency tailwinds.
“Airbnb is a unique travel company, but we see this continued slowdown in overnight stays as a headwind for multiple investors who are willing to pay,” Morgan Stanley analysts said in a note to clients.
The short-term rental group posted a loss of $0.55 per diluted share in the fourth quarter, missing estimates of a profit of $0.55, largely due to about $1 billion in charges unique taxes.
But analysts at Morgan Stanley maintained some positivity around Airbnb, citing a global accommodation supply that “continues to grow very well.”
Meanwhile, Airbnb launched a new $6 billion share buyback program, as CEO Brian Chesky told investors that 2024 would mark a “turning point” in the company's drive to expand its services.
Yasin Ebrahim contributed to this report.
