Airbnb Shares Volatile Despite 300% Jump In Revenue

Delta concerns continue to weigh on shares of Airbnb (ABNB) as investors question whether more additional lockdowns or vaccine requirements for interstate travel will weigh on future earnings.

The company reported that it beat consensus expectations on revenue and bookings last week. Airbnb reported losses of 11 cents per share. Revenue topped expectations at $1.34 billion.

The company also reported 83.1 million booked nights and “experiences,” up 197% year-over-year. “Experiences” are guided tours that Airbnb users can offer through the site.

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Revenue increased even higher, nearly 300% year-over-year. Q2 of 2020 at the height of the pandemic.

Airbnb emphasized that global travel is rebounding, with people once again crossing borders and visiting cities. Travel to high-density urban areas increased in Q2 from Q1 2021, for example — and those areas represented over 40% of gross bookings in Q2 2021.

Airbnb expects its Q3 earnings to be higher than ever, even as nights and experiences are likely to be lower.

Yet, despite rosy outlook, investors sold off Airbnb stock which fell 4% after the report. The reason was renewed concern over the spread of the delta variant of the coronavirus.

The company warned that the delta variant could affect how often guests book and cancel, which could induce volatility in the stock.

Shares of Airbnb Inc traded off 1.33%, or $2.03 at $151.65 per share in early Monday trading. Shares are down 30% from their February highs earlier in the year.

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