Consumer Internet Stocks Q2 Highlights: Airbnb (NASDAQ:ABNB)
Wrapping up Q2 earnings, we look at the numbers and key takeaways for the consumer internet stocks, including Airbnb (NASDAQ:ABNB) and its peers.
The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.
The 49 consumer internet stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
Thankfully, consumer internet stocks have been resilient with share prices up 9.9% on average since the latest earnings results.
Airbnb (NASDAQ:ABNB)
Founded by Joe Gebbia and Brian Chesky by renting out a blowup bed on the floor of their San Francisco apartment, Airbnb (NASDAQ:ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Airbnb reported revenues of $2.75 billion, up 10.6% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a miss of analysts’ booking estimates and underwhelming revenue guidance for the next quarter.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $130.55.
Is now the time to buy Airbnb? Access our full analysis of the earnings results here, it’s free.
Best Q2: EverQuote (NASDAQ:EVER)
Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
EverQuote reported revenues of $117.1 million, up 72.3% year on year, outperforming analysts’ expectations by 13.9%. The business had an incredible quarter with optimistic revenue guidance for the next quarter and exceptional revenue growth.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.7% since reporting. It currently trades at $21.43.
Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Skillz (NYSE:SKLZ)
Taking a new twist at video gaming, Skillz (NYSE:SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.
Skillz reported revenues of $25.3 million, down 37% year on year, falling short of analysts’ expectations by 4.3%. It was a disappointing quarter as the number of users on its platform declined and missed analysts’ estimates.
Skillz delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 122,000 monthly active users, down 37.8% year on year. As expected, the stock is down 11.5% since the results and currently trades at $5.60.
Read our full analysis of Skillz’s results here.
Chewy (NYSE:CHWY)
Founded by Ryan Cohen who later became known for his involvement in GameStop, Chewy (NYSE: CHWY) is an online retailer specializing in pet food, supplies, and healthcare services.
Chewy reported revenues of $2.86 billion, up 2.6% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a softer quarter as it logged slow revenue growth.
The stock is up 14.3% since reporting and currently trades at $29.50.
Read our full, actionable report on Chewy here, it’s free.
LegalZoom (NASDAQ:LZ)
LegalZoom (NASDAQ:LZ) is an online platform that provides online legal services to individuals and small businesses. The company’s co-founders found it difficult and expensive to find lawyers and file paperwork when trying to start a business so they started LegalZoom instead to address this pain point.
LegalZoom reported revenues of $177.4 million, up 5% year on year. This print beat analysts’ expectations by 2.6%. More broadly, it was a softer quarter as it logged slow revenue growth and a miss of analysts’ user estimates.
The company reported 1.61 million users, up 3.6% year on year. The stock is up 13.3% since reporting and currently trades at $6.73.
Read our full, actionable report on LegalZoom here, it’s free.
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