Airbnb Shares Slide 4% as Tepid Bookings Target Muddies Record Quarter

Airbnb Shares Slide 4% as Tepid Bookings Target Muddies Record Quarter.Vacation rental Airbnb Inc on Tuesday forecast bookings for the current quarter at par with the record-breaking previous one, disappointing investors who had expected far more amid booming summer demand from pandemic-weary travelers.

Booking rates slowed in May and June from April, which was the biggest contributor to the bumper second quarter as travelers across Europe and North America made early reservations to visit their favorite tourist spots both domestic and international.

Flight disruptions, especially in the United States, posed a challenge towards the end of the quarter, Airbnb Chief Financial Officer Dave Stephenson told analysts on a call.

Major U.S. carriers, battling with operational challenges and staff shortages, had canceled thousands of flights over the four-day Memorial Day weekend that marks the traditional start of the busy summer travel season.

Airbnb also announced a $2 billion share buyback, its first since going public, but that did little to arrest an 8% slide in its shares after hours. The stock has lost about 30% this year in tandem with a downturn in global markets driven by growing recession risks.