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Are People Fleeing Cities For Camping Life? Airbnb Faces Occupancy Headwinds And This RV Manufacturer Just Smashed Earnings Estimates

Benzinga logo Benzinga 12/7/2022 Adam Eckert
© Provided by Benzinga

Airbnb Inc (NASDAQ: ABNB) shares are facing selling pressure after analysts uncovered some occupancy headwinds in front of the company. If people aren't going to stay in a stranger's homes as much, where the heck are they going to go? 

Some might be opting for the woods, the beach or even random parking lots. At the very least, Thor Industries Inc's (NYSE: THO) demand trends seem to show that consumers are more willing to hit the road without a destination

What To Know: Thor is an American manufacturer of recreational vehicles (RVs). The company easily beat expectations this week when it reported fiscal first-quarter earnings of $2.53 per share on quarterly revenue of $3.11 billion. Analysts were looking for earnings of $1.70 per share on revenue of $2.86 billion.

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Although the company acknowledged that the RV market has been negatively impacted by macroeconomic headwinds, the company has a proven track record of resilience during economic downturns. 

"And we expect fiscal 2023 results to be no different," the company said. 

Long-term independent dealer sentiment and consumer demand for RVs remains positive, Thor Industries said. 

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In contrast, Morgan Stanley flagged a slowdown ahead for Airbnb after doing a deep dive into the company's supply and occupancy metrics and finding several headwinds.

Morgan Stanley noted that active listings have grown around 12% annually from 2018 through 2022, but the firm expects this to slow to around 7% over the next three years.

Morgan Stanley expects the slowdown in supply to create occupancy headwinds and lower forward room night demand. 

"While we expect occupancy to improve going forward, we struggle to see it improving at a faster rate than it has in the past," Morgan Stanley wrote in a note to clients

ABNB, THO Price Action: At the time of writing, Airbnb shares were down 3.93% at $89.46 and Thor shares were down 0.73% at $83.39, according to Benzinga Pro.

Photo: Steve Adcock from Pixabay.

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