Airbnb stock remains a good bet despite the uncertainty caused by the coronavirus

2021-12-05T12:40:25
Airbnb coronavirus Omicron
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Airbnb stock is a good bet despite the uncertainty caused by the coronavirus

 

Airbnb stock remains a good bet despite the uncertainty caused by the coronavirus: Airbnb stock is down about 7% over the past week and is also still down more than 20% since early November, currently trading at around $163 per share.

 

Check ِAIRBNB Stock Chart

 

Topics:

Reasons for the stock dropping

Revenues increased in the last quarter

Reasons for the demand for Airbnb

What next for Airbnb after the rise in shares

 

 

 

Reasons for the stock dropping

There are basically two reasons for the fall of the stocks.

First, investors are likely to reduce exposure to high-growth stocks due to rising inflation and an increasingly hawkish stance by the Federal Reserve,
which has indicated it may consider accelerating large-scale bond buying at its next meeting. 

Second,  This is the weakness in markets after U.S. authorities confirmed the first case of a mutated Omicron coronavirus,
believed to be highly transmissible and able to evade vaccine immune responses.

However, analysts believe that Airbnb’s stock looks relatively attractive in the wake of the recent decline.

While the stock is still trading at more than 17 times forecast revenue for 2021, this is justified by Airbnb’s strong growth and improved profitability

 

Revenues increased in the last quarter 

Last quarter, revenue rose nearly 67% year-over-year to about $2.24 billion, while net margins held steady at 37%.

As worrisome as the Omicron variant of the coronavirus is, Airbnb is best equipped to contend with another wave of COVID19,
and doable travel restrictions than different corporations within the travel space.

 

Reasons for the demand for Airbnb

One of the reasons for the increase in Airbnb demand is that the rooms are designed for social distancing,
unlike the hotels who have a lot of commonplaces and rooms.

which may also play this in the company’s favor. 

Airbnb shares are valued at $180 per share, 10% higher than the current market price.

 

What next for Airbnb after the rise in shares

 

Airbnb stock is up 18% over the past week, significantly outperforming the S&P 500, which is up nearly 2% over the same period.

Much of the gain on Friday came after the company released stronger than expected data from its third quarter 2021 numbers,
despite an earlier warning that a delta version of Covid-19 could hurt business. 

In fact, the corporation recorded its strongest quarter ever, with revenue increasing by 67% year-over-year to about $2.24 billion,
while also growing 36% over the corresponding period before the pandemic in 2019.

Net profit was $834 million, making translates to a healthy net margin of 37%.

The results indicate that the recovery in the travel industry is steadily underway,

with Airbnb emerging as a major beneficiary, given its inventory of single homes and a growing focus on longer stays.

Check ِAIRBNB Stock Chart

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