Shares in Airbnb Inc. slid more than 15% on August 7, marking the largest intraday drop since the firm went public in December 2020. The stock tanked on disappointing Q2 results after the company delivered a rather bleak outlook for Q3. Its net profit declined 15% year-over-year to $555 million, or 86 cents per share, from $650 million, or 98 cents per share, a year ago. Revenue was up 11% to $2.75 billion, although the increase in bookings was 125.1 million, up by 8.7%, which disappointed against expectations. The principal worry, according to Airbnb CFO Elinor Mertz, was the decline in longer booking lead times, which she suggested indicated demand from US vacationers was softer. The company also said growth rates would slow this quarter, coming shy of forecasts by analysts looking for an 11% gain during the peak summer travel season. That marks the third straight quarter of disappointing guidance and is making investors question the company’s growth path.
