Airbnb Plunges 6.05% on CEO's Growth Warning

On August 7, 2025, Airbnb's stock experienced a 6.05% drop in pre-market trading, reflecting investor concerns over the company's recent performance and future outlook.

Airbnb reported strong Q2 2025 earnings, with a 12.7% year-over-year revenue increase to $3.1 billion and a 15.7% rise in net income to $642 million. The company attributed this growth to rising demand, particularly in domestic travel, which contributed to an upward trend in booking nights throughout the quarter.

Despite the strong Q2 performance, Airbnb's CEO Brian Chesky warned of a slower growth rate in the second half of 2025. The company expects a notable slowdown in growth due to tough comparisons with the strong bookings in Latin America and Asia from the prior year. Airbnb also lowered its expectations for the second half of the year, with Q3 booking rates expected to remain flat.

Airbnb's guidance for Q3 2025 calls for revenue in the range of $4.02 billion to $4.10 billion, representing 8% to 10% year-over-year growth. However, the company anticipates margin pressure in Q3 and Q4 due to growth-related investments and the difficult year-over-year comparison. For the full year, Airbnb aims to maintain an adjusted EBITDA margin of at least 34.5%, including $200 million in investments for new business initiatives.