Airbnb (BNB) revenue up 299%, ContextLogic’s (WISH) losses rise in Q2

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Airbnb (BNB) revenue up 299%, ContextLogic’s (WISH) losses rise in Q2

 Airbnb (BNB) revenue up 299%, ContextLogic’s (WISH) losses rise in Q2
Image source: Sittipong Phokawattana,Shutterstock

Highlights

  • Airbnb Inc. (NASDAQ: ABNB) reported revenue of US$1.3 billion, up 299% year-over-year.
  • ContextLogic Inc. (NASDAQ: WISH) reported revenue decline of 6% to US$656 million.
  • WISH booked a net loss of US$111 million or US$0.18 per share diluted in Q2.

Holiday rental provider Airbnb, Inc. (NASDAQ: ABNB) and online ecommerce platform ContextLogic Inc. (NASDAQ: WISH) were trending on Wall Street Friday.

The ABNB stock was down 2.04% and the WISH share was trading at 26.94% lower from the previous close at 9:39 am ET. Both the companies reported their Q2 quarter results on Aug 12.

We explore the stocks’ recent developments to understand why they are drawing attention.

Airbnb Inc. (NASDAQ: ABNB)

Airbnb’s revenue for the June quarter was US$1.3 billion, a 299% jump year-over-year compared to US$335 million in Q2 of 2020. It incurred a net loss of US$68 million compared to a net loss of US$576 million in Q2 the previous year, an improvement of US$508 million.

Its Q2 adjusted EBITDA was US$217 million compared to the negative adjusted EBITDA of US$397 million in the June quarter of 2020. ABNB’s cash & cash equivalents, restricted cash, and marketable securities were US$7.4 billion as of June 30, 2021.

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The company expects its adjusted EBITDA to be higher in the second half of 2021 compared to the first half because of low expenditure on sale and marketing as well as operations and support, which were done in first half ahead of the summer travel season.

Airbnb has grown from three guests to 900 million guests since 2007. It gives services across 220 countries and regions. ABNB is one of the largest online alternative accommodation travel agencies. It offers booking services for boutique hotels and experiences too. 

Its market capitalization is US$90 billion. The stock closed at US$151.15 on Aug 12, 2021.

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Source - pixabay

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ContextLogic Inc. (NASDAQ: WISH)

The revenue for the June quarter was US$656 million compared to US$701 million for the same period a year ago. It booked a net loss of US$111 million or US$0.18 per share diluted compared to US$11 million or US$0.10 per share diluted in the previous year’s June quarter.

Its cash and cash equivalents were US$1.4 billion in the June quarter. Its monthly active users were 90 million in the June quarter compared to 116 million in the June quarter of 2020.  

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The company has completed its IPO of Class A common stock in December 2020 and sold 46 million shares at an IPO price of US$24.0 per share. It has a market capitalization of US$5.82 billion.

ContextLogic is an online e-commerce platform that offers clothing, accessories, cosmetics, gaming products and equipment, plastic products, and other products.

Its quarterly performance was less -than-expected. As a result, the stock may have declined in the intraday trading Friday. It closed at US$9.41 on Aug 12, 2021.

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Bottomline

With higher vaccination rates and fewer travel restrictions, the stocks saw considerable gains in recent times. Business increased as people travelled around more frequently. However, the less than expected quarterly results of WISH may have pushed the stock down in Friday’s session.

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