Last week, the company cautioned the market about travel given the Delta variant, so the stock got slammed. Today, the stock jumped 2% on the FDA-Pfizer approval.
A big disruptor. They had an efficient cost structure before going public but endures. The service itself is great for consumers, but the stock fundamentals are not there now. Another worry is competition with Expedia and other players entering this space. Then, there are legislative pressures that may arise.
People learn new behaviours and they like them and stick with them. ABNB has come through COVID and people will continue to use them. He thinks this is an attractive name and this is the leader of the alternative accommodations. (Analysts’ price target is $170.00)
He is puzzled why it's fallen since February. Travel has cooled because of the new variant. If so, people will want to stay (home) or control things. He thinks ABNB is marvellous.
On his radar. Compares it to Uber. People won't entirely go back to the way things were. ABNB appears to be charging more in fees, thereby reducing value proposition. It has staying power.
Stockchase Research Editor: Michael O'ReillyABNB has of course been impacted by the pandemic - recent EPS reflected that. However, the company still managed to hit $10 billion in bookings -- up 50% from the same quarter a year ago. This is the segment of the travel sector that is likely to make the quickest recovery, analysts expect. Wells Fargo just upgraded the stock to $200. We would buy this with a stop loss at $100, looking to achieve $175 -- upside potential exceeding 29%. Yield 0% (Analysts’ price target is $174.19)
It reports Thursday. It may tell a terrific story, but shares are expensive in a time when the market has turned against the high-flyers. Then again, vacation bookings (not business trips) are booming now.
A great way to play the travel boom he predicts. This reports Thursday next week, and he's waiting for the lock-up period to end when shares will likely plunge. Watch the quarterly report to come.
He really likes this true reopening stock, and long-term it will be a disruptor of accommodation. Soon, it'll be a victim of lock-up expiration when insiders sell their initial shares. Nibble at $157, but back up the truck if this falls to $117.
The concept will survive, whether it's with ABNB or some other company. A risky trade. There will be some form of recovery, but he'd stay away until he saw more clarity in the markets.
The assets are the people's homes who rent them out, and this single platform is relatively cheap to operate. Travel will roar back, and staying at an Airbnb is cheaper than a hotel. But ABNB is not cheap now.
The stock has been running up. Is it inflated or worth the rise? It was downgraded today, and he had no idea it has moved up this much. You can buy this and put it away for a while.
An amazing company but you buy this anticipating massive growth in many years. This could very well happen. But any value investor can't bet on this at these high PE levels. Already it has a $100 billion market cap. It's pure speculation.
Has a $95 billion market value yet is still too low. They nearly have a monopoly on vacationing. Tourists realize that it's safer to stay at an Airbnb than a hotel. The stock doubled upon its IPO, and could double again if they maintain their growth. He trusts the CEO.
Allan Tong’s Discover Picks At the start of the pandemic, the company’s valuation stood at $18 billion (all figures USD). Then, the IPO was going to be priced at $56-60, which meant a $28 billion valuation. So far so good. Then, the company bumped up the debut price to $68. At the end of its IPO, ABNB was worth $101.6 billion. It’s reasonable to expect that Airbnb will thrive in next year’s reopening and it’s fair to expect tourism to bounce back (huge, I think). However, Airbnb never turned a profit before Covid, and in fact has accumulated $2.1 billion in losses since its 2008 birth. The company reported $697 million in losses during the first nine months of 2020. Read The Truth About ABNB’s Worth and Caution on IPOs for our full analysis.
Airbnb is a American stock, trading under the symbol ABNB (previously ABNB-Q on Stockchase) on the NASDAQ (ABNB). It is usually referred to as NASDAQ:ABNB or ABNB