Why Airbnb Stock Was Falling Today
Shares of Airbnb (NASDAQ: ABNB) were down more than 10% as of 1:48 p.m. ET on Wednesday after the vacation rental website delivered disappointing guidance for the fourth quarter. The company beat revenue and earnings estimates for the third quarter, but investors viewed the weaker-than-expected revenue guidance as a sign that the travel recovery might be showing early signs of decelerating.
The stock is down 41% year to date, but is the post-earnings drop an overreaction?
Airbnb trades at a high valuation, which means the market is sensitive to any signs that revenue growth could decelerate in the near term. Slowing momentum in the travel recovery seems to be what investors are focused on today. Indeed, management's fourth-quarter revenue guidance of $1.84 billion at the midpoint was slightly below the Street's estimate for $1.85 billion.
Source Fool.com
