Why Airbnb Stock Was Slipping Today
Shares of Airbnb (NASDAQ: ABNB) were falling today as worries about an economic slowdown seemed to sweep the market a day before the vacation rental website reports third-quarter earnings. Additionally, a Wall Street analyst issued a bearish note for the travel sector.
As of 10:06 a.m. ET, the stock was down 4.7% while the Nasdaq had lost 1.2%.
Investors seem to be steeling themselves for another 75-basis-point increase in the federal funds rate ahead of the Federal Reserve rate decision on Wednesday. Mortgage rates have surged over the past six months, impacting Airbnb operators, especially professionals who run multiple listings. Social media sites abound with anecdotal reports of Airbnb rentals that are now for sale, and a number of operators have complained that local markets have become too saturated.
Source Fool.com
