On August 7, Airbnb, Inc. (NASDAQ:ABNB) shares surged to a more than four-year high after the company raised its full-year revenue forecast. The firm gave artificial intelligence credit for cutting costs and speeding up how fast it ships new features.
Its competitor Booking Holdings Inc. (NASDAQ:BKNG) had a rougher time delivering good news: On August 4, the firm beat second-quarter estimates but trimmed its full-year gross bookings forecast. It blamed ongoing fallout from the Middle East conflict on international travel.
Airbnb now expects 2026 revenue to grow at least a mid-teens percentage, up from its earlier low- to mid-teens call, after posting second-quarter revenue of $3.61 billion, up 17% and ahead of the $3.57 billion Wall Street wanted. CEO Brian Chesky didn't hold back, calling AI the best thing to ever happen to Airbnb and pointing to a 16% drop in customer support costs per booking as proof.
Booking Holdings Inc. (NASDAQ:BKNG) made a similar case for its own AI investments. CFO Ewout Steenbergen said the company is already seeing a positive return. Argus Research backed that up by raising its price target to $245 from $210 on August 10. Yet Booking still cut its full-year bookings outlook to high-single-digit growth from a prior high-single- to low-double-digit range. The firm warned that reduced Middle East travel and pricier airfares will stick around through the third quarter.
If AI is paying off at both companies, why did only one of them feel good enough to raise its outlook?
#august #firm
Its competitor Booking Holdings Inc. (NASDAQ:BKNG) had a rougher time delivering good news: On August 4, the firm beat second-quarter estimates but trimmed its full-year gross bookings forecast. It blamed ongoing fallout from the Middle East conflict on international travel.
Airbnb now expects 2026 revenue to grow at least a mid-teens percentage, up from its earlier low- to mid-teens call, after posting second-quarter revenue of $3.61 billion, up 17% and ahead of the $3.57 billion Wall Street wanted. CEO Brian Chesky didn't hold back, calling AI the best thing to ever happen to Airbnb and pointing to a 16% drop in customer support costs per booking as proof.
Booking Holdings Inc. (NASDAQ:BKNG) made a similar case for its own AI investments. CFO Ewout Steenbergen said the company is already seeing a positive return. Argus Research backed that up by raising its price target to $245 from $210 on August 10. Yet Booking still cut its full-year bookings outlook to high-single-digit growth from a prior high-single- to low-double-digit range. The firm warned that reduced Middle East travel and pricier airfares will stick around through the third quarter.
If AI is paying off at both companies, why did only one of them feel good enough to raise its outlook?
#august #firm
23 days ago
