Airbnb’s Stock (ABNB) Falls Post Earnings as Guidance Fails to Impress

Airbnb's stock (NASDAQ: ABNB) reacted negatively to the latest earnings print, with a 5.24% decline almost doubling losses seen so far in 2025 (-5.68%). Whilst the company did offer up a mild beat on the street's consensus, guidance, and the slowing North American growth have weighed on the stock.

Revenue of $2.27 billion reflects a 6% year-over-year revenue increase, and a mild beat on the $2.26 billion expected. EPS came in on par, with the $0.24 matching consensus estimates. Q2 revenue guidance of $2.99 billion to $3.05 billion at the mid-point ($3.02 B) came in just light of the expected $3.03 billion expected.

Taking a closer look at the report, and Airbnb delivered a total of 143 million nights and experiences booked, marking an 8% increase from the previous year. Despite the overall growth, Airbnb continues to face challenges with foreign travelers showing a preference for destinations outside the US, opting for countries like Canada, Mexico, Brazil, France, and Japan.

This trend has contributed to North America being Airbnb’s slowest-growing region. Nevertheless, Airbnb maintains and even grows its market share in the US.

Higher-income travelers have shown stable growth in bookings with higher average daily rates (ADR), indicating that this segment remains largely unaffected by market changes. The company witnessed robust bookings with short lead times, although there was a noticeable slack in longer lead-time bookings, suggesting consumers are being cautious, particularly before the summer travel season.

In terms of strategy, Airbnb says it remains focused on enhancing its core services, expanding its international presence, and venturing beyond its traditional home offerings to drive growth. Despite early demand softness in the US, there hasn't been a significant reduction in pricing by hosts. However, Airbnb sees potential in encouraging price adjustments to stimulate demand.

Whether that will be enough in the weeks ahead to shift momentum is yet to be seen, but for the time being at least, it appears that the bears remain in charge of a stock that had already declined 21.68% on a 12 month basis leading into the extended hours drop.