5 Stocks that Crushed Earnings Expectations

4. Airbnb, Inc. (NASDAQ: ABNB)

Number of Hedge Fund Holders: 52

The travel industry has recovered amid mass vaccination and ease in mobility restrictions. As a result, many people traveled across the world after countries opened their borders. The trend benefitted companies associated with the travel and tourism industry.

Airbnb, Inc. (NASDAQ: ABNB) was also among the top beneficiary of the trend. The company recently announced record revenue for the second quarter. The online marketplace for lodging reported a loss of 11 cents per share, well below a loss of $2.18 per share in the year-ago quarter. Analysts, on average, were looking for a loss of 36 cents per share.

Revenue for the quarter skyrocketed approx. 300 percent on a year-over-year basis to $1.3 billion, beating the consensus forecast of $1.26 billion. The solid quarterly performance was mainly driven by higher bookings during the quarter. Q2 gross booking value jumped to $13.4 billion, exceeding estimates of $11.56 billion.

Speaking on the results, CEO Brian Chesky said, “We’re proud of our strong results this quarter, which again surpassed 2019 revenue levels. Travel is different than before, and because of our adaptable business model and continued product innovation to meet the changing needs of our guests, Airbnb is leading the travel rebound.”

In the Q2 2021 investor letter of Worm Capital, the fund mentioned Airbnb, Inc. (NASDAQ: ABNB). Here is what the fund  said:

“Throughout the quarter, you may have noticed that we averaged into a significant position in Airbnb (ABNB). Though the stock has been a relative underperformer since its February highs, we are highly confident about the company’s prospects and its ability to generate meaningful compounded returns over time.

Some history: We have been following Airbnb’s journey for several years, long before the company went public earlier this year. (In fact, nine years ago, in November 2012, Eric profiled the company for Inc.: “Airbnb Is Changing Travel.”)…” (Click here to see the full text)