Airbnb Inc (NASDAQ:ABNB, ETR:6Z1) shares fell nearly 7% in pre-market trading, putting the company on track to lose over $5 billion in value, despite reporting second-quarter results that beat expectations.
Revenue for the quarter rose 13% to $3.1 billion and net income grew 16% to $642 million, both ahead of analyst forecasts.
However, the company warned that profit margins will be under pressure in the coming months due to the impact of new US tariffs, particularly those affecting Switzerland and India, and a planned $200 million investment in new services.
CFO Ellie Mertz said travel demand recovered after initial disruptions from recent trade measures, but cautioned that booking growth is expected to slow for the rest of the year.
CEO Brian Chesky highlighted new offerings, including app-based bookings for services such as cleaners and cooking classes, but these are not expected to generate significant revenue in the near term.
Airbnb also announced a new $6 billion share buyback programme. Despite stronger sales, shares have lagged the S&P 500 this year as economic uncertainty and changing travel patterns weigh on the outlook.
Ahead of the bell, the stock was off $8.80 at 121.70p.