Airbnb Inc Cl A
Airbnb Inc Cl A
IBD Stock Analysis
- Shares broke out of a bottoming base, formed cup with handle July 1
- Stock surpassed entry point of 152.86; buy zone extends to 160.50
- If shares fall below intraday low of 146.50, sell rules go into effect
Industry Group Ranking
Cup with Handle
* Not real-time data. All data shown was captured at
2:26PM EDT on
Airbnb stock broke out of a cup with handle within a much larger consolidation. The buy point is 152.86. The buy zone extends to 160.50. If the stock falls below its intraday low of 146.50, sell rules go into effect in order to limit losses.
The jump in Airbnb stock trails the company’s recent second-quarter earnings report, which indicated pent-up demand for travel as more countries get vaccinated and restrictions are lifted.
When the company reported second-quarter earnings on Aug. 13, Airbnb revenue soared 300% to $1.3 billion. Its adjusted loss was 11 cents a share. Analysts expected a loss of 36 cents.
Airbnb’s gross booking value in the quarter exceeded pre-pandemic levels. Travelers from the U.S. and parts of Europe were the primary drivers of the travel recovery. But the company warned of impacts on travel by Covid-19 and the delta variant in its newsletter to shareholders.
San Francisco-based Airbnb was founded in 2008 as Airbed & Breakfast, operating an online marketplace for lodging. Its marketplace model connects hosts and guests online or through mobile devices to book spaces. Primary offerings are homestays for vacation rentals and tourism activities.
Airbnb IPO Set A Record
Plans for an Airbnb initial public offering were seriously disrupted by the pandemic, which hit much of the U.S. economy hard. But perhaps no industry was hit as hard as travel. Airbnb — along with airlines, hotels and travel booking companies — had a disastrous second quarter in 2020. Airbnb revenue plummeted 72% from the year-ago period.
Nevertheless, the company launched its IPO in December that raised $3.5 billion, widely exceeding heightened expectations. It was the largest IPO of the year. Airbnb stock soared by triple digits on its first day of trading.
Airbnb competes with other online travel platforms such as Booking Holdings (BKNG), Expedia (EXPE) and Trip.com (TCOM). It also faces competition from search engines sites such as Google-owner Alphabet (GOOGL), TripAdvisor (TRIP) and Trivago (TRVG).
In 2019, Airbnb began adding trip packages, called Airbnb Adventures. The packages vary widely in price, depending on the length and location of the tour. They include adventures such as a river trip in the Yukon or a bush walk in Kenya.
Airbnb Stock Checkup
On Tuesday, Chief Executive Brian Chesky announced Airbnb will start housing 20,000 Afghan refugees around the world free of charge. The refugees will be housed in properties listed on Airbnb’s platform and the stays will be funded by Airbnb. He did not say how long they would stay or the cost.
Over the past four years, Airbnb has connected approximately 25,000 refugees — including hundreds participating in the U.S. Special Immigrant Visa Program — to temporary housing, the company said in a press release
The IBD Stock Checkup tool shows that Airbnb stock has a weak IBD Composite Rating of 24 out of 99. The rating is a blend of key fundamental and technical metrics to help investors easily gauge a stock’s strengths. It means Airbnb currently outperforms 24% of all stocks in terms of the most important fundamental and technical stock-picking criteria.
The stock also has a Relative Strength Rating of 29. The rating tracks market leadership by showing how a stock’s price movement over the last 52 weeks measures up against that of other stocks.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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