Airbnb (ABNB, Financial) delivers a tepid Q1 beat and soft Q2 outlook as a sluggish travel market and tariff worries weigh on its growth trajectory.

In the first quarter, nights and experiences booked rose 8% to 143.1 million—just shy of the 143.16 million consensus—while average daily rate dipped 1% to $171, though ex-FX ADR actually climbed 1% across every region thanks to higher underlying prices.

Revenue reached $2.27 billion, up 6.1% year-over-year and barely topping the $2.26 billion estimate, and gross booking value rose 7% to $24.5 billion versus the $24.46 billion forecast (a 9% ex-FX increase). Net income plunged to $154 million from $264 million a year ago, and Airbnb earned $0.24 per share, matching Street estimates.

Looking ahead, Airbnb forecasts Q2 nights and experiences growth to moderate off Q1's pace, with ADR roughly flat versus last year. The company sees revenue of $2.99 billion to $3.05 billion—midpoint $3.02 billion, just below the $3.03 billion

Bloomberg consensus—and plans to plow $200 million to $250 million into new business launches, with details due May 13. Shares ticked up marginally on Friday as investors weighed a modest beat against a cautious guide.

Wedbush jumped on the downside, cutting Airbnb to Neutral from Outperform and trimming its 12-month price target to $135 from $150. “Travel demand is slowing and the stock's premium multiple may be hard to sustain,” analysts wrote, though they praised Airbnb's management team and long-term potential.

Other firms largely held to Buy ratings but tempered margin and growth forecasts amid concerns of higher costs—be they forex headwinds or rising tariff exposure. Investors should note that a decelerating travel backdrop and flat ADR guidance could keep bookings growth muted through summer, challenging Airbnb's ability to regain early-year momentum.