Shares of Airbnb, Inc. (ABNB) plummeted 5.89% in Friday's trading session, underperforming the broader market. This downward movement comes amid a strong earnings report from travel industry rival Booking Holdings (BKNG), which saw its stock soar on robust Q4 performance and positive outlook.
Booking Holdings, the parent company of popular travel platforms like Booking.com and Priceline, reported a 4% rise in shares after beating earnings expectations and increasing its dividend. The company benefited from strong travel demand, with room nights growing 13% and gross bookings rising 17%, outpacing forecasts.
While Airbnb also benefited from the travel surge, its underperformance compared to Booking Holdings suggests investors may be favoring traditional accommodation platforms over alternative offerings like vacation rentals. Booking Holdings' alternative accommodations segment, which includes vacation rental listings, saw a 19% increase in room nights, outpacing the overall business growth.
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