Airbnb said it had its “strongest quarter ever” as the travel rebound continued to gather pace.
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Shares of Expedia (ticker: EXPE) and Airbnb (ABNB) surged in premarket trading Friday as investors grew increasingly confident in the travel recovery following strong earnings reports.
Both companies reported earnings late Thursday and provided further signs that the travel rebound is gathering pace. Airbnb stock was close to 6% up in premarket trading, while Expedia shares surged more than 14%.
Expedia reported revenue of $2.96 billion in the third quarter, up 97% from the previous year and ahead of the Wall Street consensus for $2.73 billion. CEO Peter Kern was also optimistic when it comes to the months ahead. “With early positive signs in Q4 and many countries announcing new openings to international travelers, we are feeling increasingly confident about a continued recovery.”
There is more to be positive about, too. The trans-Atlantic travel corridor is set to open up for Covid-19 vaccinated tourists on Monday and airlines expect robust holiday travel demand.
Read:British Airways Owner Pins Recovery Hopes on ‘Pivotal’ Trans-Atlantic Reopening. It Has a Point.
Airbnb said it had its “strongest quarter ever” as the travel rebound, which began earlier this year, accelerated in the third quarter. Revenue of $2.2 billion—its highest ever—beat analysts’ estimates for $2.06 billion and was 36% higher than the comparable prepandemic period in 2019. Net income was up 280% on the previous year at $834 million, or diluted earnings per share of $1.22, beating the FactSet analysts’ consensus of $0.73 per share.
It isn’t just the travel rebound that Airbnb sees as being beneficial to its business, but the technological trends that have emerged as a result of the pandemic. “Technologies like Zoom make it possible to work from home. Airbnb makes it possible to work from any home. This newfound flexibility is bringing about a revolution in how we travel,” the company said in a letter to shareholders.
Write to Callum Keown at [email protected]
