Yahoo Finance Live is checking Airbnb’s stock ahead of its expected third-quarter earnings report.
Video transcript
RACHELLE AKUFFO: So we’ll start with my pick, which is Airbnb. The home rental company is under some pressure today. And that’s ahead of its third-quarter earnings report coming out tomorrow. Now that’s interesting because the company has seen earnings growth for the past five quarters. Now, the Street expects earnings per share of $1.47. This represents a 20.5% year-over-year increase on revenue of $2.84 billion. This is approximately 26.8% more than in the same quarter last year.
Now, that’s interesting because longer-term stays of 28 days or more are actually Airbnb’s fastest growing category compared to 2019 and should still be a boost in Q3. Now investors will see it as an indicator of where the consumer is, especially considering a loosening labor market and, of course, increased pressure from employees to return to the office, instead of some of those longer-stay places that people are renting out.
Now, according to Seeking Alpha, Airbnb actually has more rooms listed on its platform than the top five hotel chains have in their portfolios combined. And that in addition to competing with traditional hotels. We see that Airbnb also expects growth with its Experiences unit. So I’m really trying to diversify us here, Josh.
JOSH SCHAFER: Yeah, Rachelle, I’m excited about this call, mainly because I think we have a good sense of the consumer and also where Americans are going in terms of returning to work, right? You mentioned that extended stays have been a consistent growth area for Airbnb. Does it still continue in this quarter and does it continue to grow as it has been? as we see more and more people returning to the office, I’m curious if that part of the business is fading a bit.
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