Online lodging company Airbnb, Inc. (NASDAQ: ABNB) is slated to report its second-quarter results on August 2. The TipRanks website traffic tool indicates that the company will deliver solid second-quarter results.
Airbnb’s Website Traffic Data is Encouraging
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Airbnb’s performance this quarter.
According to the tool, the number of visits to airbnb.com was up 47.97% quarter-over-quarter.
Meanwhile, the Airbnb website recorded a 95.48% monthly rise in global visits in June, compared to the same period last year. Also, year-to-date, Airbnb website traffic increased by 50.96%, compared to the previous year.
Consequently, the company’s heightened website traffic is alluding to a positive outcome in the second quarter results. Learn how Website Traffic can help you research your favorite stocks.
What is Driving Traffic Towards Airbnb?
Airbnb is experiencing a stable improvement in both long-distance and cross-border travel due to relaxed travel restrictions. Further, flexibility in travel plans due to work-from-home initiatives has allowed people to travel at their own pace in the busy summer season.
Furthermore, the improvements in its offerings have continued to attract travelers to its website who are looking for a comfortable stay.
Company Guidance for Q2
For the second quarter, Airbnb expects to report revenues in the range of $2.03 billion and $2.13 billion. Meanwhile, the company expects its revenue as a share of gross booking value (GBV) to be higher in the second quarter compared to the first quarter.
Analyst Estimates
Airbnb is expected to report earnings per share (EPS) of $0.45 compared to a loss of $0.11 per share reported in the year-ago quarter.
In terms of quarterly revenues, analysts expect revenues to be about $2.1 billion, which represents a growth of 61.5% from the previous year.
Wall Street’s Take
Overall, the Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 12 Buys, 18 Holds, and one Sell. The ABNB average price target of $151.59 implies the stock has upside potential of 36.3% from current levels. Shares have declined 23.6% over the past year.
Investors Remain Upbeat About Airbnb Stock
TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on ABNB. Further, 11.5% of the top portfolios tracked by TipRanks, increased their exposure to ABNB stock over the past 30 days.
Final Thoughts
Airbnb’s convenient and diverse offerings in various locations have made it one of the leading travel portals. Consequently, the rise in website traffic amid the lifting of restrictions is a positive sign for the company’s impending second-quarter results.
However, a looming recession and consumer price sensitivity amid high inflation could impact the company’s growth and hurt the upcoming results to some extent.
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