Airbnb results.
Despite the good figures for the third quarter, “the company has offered less optimistic outlooks for the fourth quarter” due to “increased economic uncertainty, which is expected to curb travel demand after a strong summer season,” he explains.
Farhan Badami, market analyst at eToro. Investors will also be watching how #AirBnB “addresses growing regulatory pressure, especially following the ban on short-term stays in New York City,” he says.
Airbnb's business has seen a steady rebound in recent quarters, as travel demand has recovered from the Covid-19 pandemic. The company's third-quarter results beat expectations in both revenue and profits, with earnings reaching $6.63 per share, beating estimates.
Benefiting from an increase in domestic stays in rural areas during the pandemic, more guests are returning to cities, with bookings for high-density urban stays increasing 15% in the third quarter compared to a year ago. International travel is also returning, with a 17% increase in cross-border overnight bookings.
As prices for rental properties and hotel stays rise due to inflation, Airbnb has reacted by introducing new tools to help hosts set competitive prices. In September, the average price per night for a one-bedroom listing on Airbnb was $120, up 1% from a year earlier, while hotel #prices rose 10% to $153, according to the company.
Looking ahead, the company has offered a less optimistic outlook for the fourth quarter. They attribute this to increased #economic uncertainty, which is expected to dampen travel demand after a strong summer season. Investors will also closely monitor how Airbnb addresses growing regulatory pressure, especially following New York City's ban on short-term stays.
This content is for informational and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results. CFDs are leveraged products and carry a high risk to your capital
