Airbnb (NASDAQ:ABNB) shares plunged more than 10% intra-day today after the company reported its Q1 earnings, anticipating fewer bookings in Q2 compared to a year ago period.

Q1 EPS came in at $0.18, missing the Street estimate of $0.20, while revenue of $1.8 billion came in better than the Street estimate of $1.79 billion. For Q2/23, the company expects revenue to be in the range of $2.35-$2.45 billion, compared to the Street estimate of $2.42 billion.

RBC Capital analysts think that their earlier prediction about Europe's risk of economic downturn is coming true. The company believes that there is a shortage of supplies, but in order to increase demand, they will need to convince hosts to lower their prices. The analysts cut their price target on the company to $105 from $135 while maintaining their Sector Perform rating.