Airbnb Faces Growth Slump Amid Tariff Concerns
Airbnb's shares dropped over 7% due to a forecast of slower growth in the year's latter half, causing investor disappointment. The company expects tariffs to affect margins, contrasting with the stronger performance of other travel firms. Investors now turn to Expedia for further insights.
Airbnb shares slipped over 7% on Thursday following the company's projection of slower growth in the latter half of the year. This news has disheartened investors who anticipated a surge in travel demand after buoyant forecasts from other major travel firms.
The vacation rental market felt a setback with Airbnb's negative outlook, despite a consumer sentiment rebound in July. United Airlines and Hilton Worldwide recently predicted rising bookings and robust fourth-quarter revenue. Similarly, Booking Holdings reported positive quarterly results, adding to the upbeat industry sentiment.
According to Danni Hewson, head of financial analysis at AJ Bell, Airbnb is grappling with impacts from tariffs affecting margins. Investors are keenly awaiting Expedia's results for a clearer picture of the travel industry's state in the U.S.
(With inputs from agencies.)
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