Woke Airbnb Suffers 12% Share Price Drop After Weak Earnings Guidance

Woke corporation Airbnb shares fell by 12 percent in Wednesday morning trading even though the company reported first-quarter earnings that exceeded analyst expectations for both revenue and earnings per share (EPS). The decline in share price followed Airbnb’s weaker-than-expected guidance and a cautious outlook for Q2 2023.

CNBC reports that despite the company reporting first-quarter earnings that exceeded analyst expectations for both revenue and earnings per share (EPS), Airbnb shares fell 12 percent in Wednesday morning trading. Airbnb’s weaker-than-expected guidance and a cautious outlook for the second quarter of 2023 are blamed for the decline in share price.

The industry leader in home sharing reported Q1 sales of $1.82 billion, exceeding the $1.79 billion consensus analyst estimate from Refinitiv. Additionally, the business reported EPS of 18 cents, more than doubling the forecasted figure of nine cents. With a net profit of $117 million, Airbnb has experienced its first profitable first quarter on a GAAP basis. In the year-ago quarter, the company had a net loss of $19 million, or three cents per share.

The business wrote in a shareholder letter that it has had a “strong start” to the year and anticipates another “strong summer travel season.” However, Airbnb also noted that year-over-year comparisons for the second quarter would be difficult, stating that “Nights and Experiences Booked will have unfavorable year-over-year comparisons in Q2 2023 as we overlap pent-up 2022 demand following the COVID Omicron variant.” In light of this, the platform projected Q2 revenue between $2.35 billion and $2.45 billion, which was slightly less than Refinitiv’s forecast of $2.42 billion.

Airbnb has previously come under fire for its politically biased treatment of its users, including prominent conservative voices. In February, 2022, Breitbart News reporter Alana Mastrangelo wrote:

Conservative author and journalist Michelle Malkin and her husband were banned by Airbnb as “retaliation” for her engaging in free speech at a conference last November. Malkin says: “The speech delved into the K-20 metastasis of anti-white curriculum, the corporate media’s whitewashing of black-on-Asian attacks, and the long campaign to censor nationalist dissidents who put America first,” adding that “San Francisco-based Airbnb notified me that I was banned from using its services ever again and imperiously deleted my account.”

The company also took a stance in the Russia-Ukraine war, banning all Russians from using the platform. Breitbart News reporter Allum Bokhari wrote in April 2022:

Airbnb has banned the entire populace of two countries. If you are located in Russia or Russia-aligned Belarus, you will no longer be able to make reservations through the platform, anywhere in the world.

News of the upcoming ban was reported earlier this month, after Airbnb CEO Brian Chesky, currently sporting a Ukraine flag in his Twitter profile, tweeted that the platform planned to suspend all operations in both countries. Airbnb has since released details of the move on its website, including the fact that “guests located in both countries will no longer be able to make new reservations anywhere in the world.”

In the investor letter, Airbnb emphasized its focus on three strategic goals: making hosting as popular as travel, offering guests reasonably priced lodging, and growing its presence in “less mature” international markets. The company wants to increase the platform’s appeal to both hosts and visitors while also ensuring a wider reach in underserved areas.