Airbnb stock fell Wednesday after reporting second-quarter results that beat on earnings but missed slightly on revenue.
Airbnb also announced a $2 billion stock buyback program.
Late Tuesday, the rental accommodations provider reported adjusted earnings of 56 cents a share on revenue of $2.1 billion. Wall Street expected Airbnb to report earnings of 45 cents a share on revenue of $2.11 billion, according to FactSet.
Airbnb Stock Action
Airbnb stock dipped 1.1%, closing at 115.02 on the stock market today. Airbnb stock has an RS Rating of just 22 out of a best-possible 99. Its EPS Rating is 69.
The company reported more than 103 million nights and experiences booked, its largest quarterly number ever, but short of estimates.
Airbnb reported gross bookings of $17 billion, up 27% from the year-ago period.
The company is getting a boost as consumers shift their spending from goods to services. Consumers are eager to travel after being cooped up at home throughout the pandemic.
Travel Boom To Continue
San Francisco-based Airbnb expects the travel boom to continue. It guided third-quarter revenue in the range of $2.78 billion to $2.88 billion, below the Wall Street estimate of $2.77 billion.
Despite more people returning to the office for work, Airbnb's long-term stays, where guests stay in a home for 28 days or more, is still Airbnb's fastest-growing segment, with 25% growth vs. the same quarter a year ago.
While Airbnb stock is trading above its 50-day moving average, it has a weak IBD Composite Rating of 38 out of a best possible 99.
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