Airbnb (ABNB) is set to report earnings today as tech companies negotiate a difficult macroeconomic environment.
Inflation has roiled some of tech's tried-and-true names, facilitating layoffs and hiring freezes across the sector. Nevertheless, many tech companies have posted decent financial results this earnings season.
Additionally, there's reason to believe that travel-centric names are set up to fare better than some of their counterparts. For example, Uber (UBER) yesterday reported that it was positive cash flow for the first time, which the company partially attributed to travel volume.
Here's what Wall Street's expecting to see from Airbnb today:
Revenue: $2.1 billion expected versus $1.5 billion in Q1 2022
Adjusted EPS: $0.51 expected versus -$0.03 in Q1 2022
Nights and experiences booked: 106.1 million expected versus 102.1 million in Q1 2022
Shares of Airbnb are down about 35% year-to-date as of open this morning, but have been climbing and are up approximately 11% over the last five days as of this afternoon.
The U.S. has been seeing inflation hit historic levels, and the Fed's taken action, raising rates yet again in recent weeks. Democrats have also proposed the Inflation Reduction Act, which could set up the average American household to save $1,800 in energy costs, according to one analysis.
Simultaneously, travel is having a moment, albeit a complicated one. After two years of the pandemic, travel agents are reporting that they're overwhelmed not only by the number of customers they've had reaching out, but by how complicated COVID-19-related regulations have become. Still, companies like Marriott (MAR) have beat analysts' estimates this quarter on just how much travel demand has recovered.
We'll see, but if inflation continues spiking, it could affect this travel boom.
Allie Garfinkle is a senior tech reporter at Yahoo Finance. Find her on twitter @agarfinks.
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