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%, but the outlook for the rest of the year is more cautious. Airbnb attributes this slowdown to tough comparisons with the previous year's strong performance and increased investments in new growth initiatives and policy efforts.

During the Q2 earnings call, Airbnb reported a 13% increase in revenue, booking 134 million nights. However, the company also indicated that these investments will impact earnings margins, particularly in the second half of the year. This cautious outlook has led to a decline in investor confidence, as Airbnb faces steeper competition from traditional hotels and increased regulatory scrutiny in various markets.