Airbnb Plunges 6.55% on CEO's Growth Warning

On August 7, 2025, Airbnb's stock dropped by 6.55% in pre-market trading, reflecting investor concerns over the company's growth prospects for the remainder of the year.

Airbnb's CEO, Brian Chesky, recently warned of slower growth in the second half of 2025, despite strong Q2 earnings. The company's revenue for the second quarter rose by 13%, reaching $3.1 billion, driven by a 13% increase in bookings compared to the same period last year. However, Airbnb has forecasted weaker growth for the rest of the year, citing tough comparisons with the previous year's strong performance.

Airbnb's cautious outlook is attributed to increased investments in various areas, which are expected to impact earnings margins, particularly in the second half of the year. The company has also indicated that growth may be pressured for the remainder of 2025, as it continues to invest in expanding its services and improving its platform.