Airbnb Share Forecast: On May 3, 2022, Airbnb announced exceptional results for the first quarter of fiscal 2022-23. The results exceeded Wall Street expectations, both in terms of results and results. The shares are expected to trade between $106.2 and $119.7. The short term recommendation is Sell
Airbnb Stock Forecast: Latest Price
Airbnb Stock Forecast: Stock Performance Chart
| Action name | 5 days | 1 month | 6 months | 1 year |
| ABNB Share | -3.4% | -28.3% | -40.3% | -10.3% |
Airbnb Stock Forecast: Support and Resistance
| Source | Support | Resistance | Recommendation |
| invest.com | $103.6(S3) | $119.2 (R1) | Sale |
| Bar chart | $108.9 (S3) | $120.2(R1) | Sale |
Airbnb Stock Forecast: Latest video
Airbnb Stock Forecast: The Factors That Can Boost The Stock
- Airbnb business model- The travel industry has suffered a setback amid Covid 19 and travel restrictions have been imposed all over the world. Airbnb Inc has also been a victim of the global downturn in the tourism industry. But, since last year, he has been recovering well as people look forward to traveling as lockdowns and restrictions are lifted across the world. Recently, MasterCard said that cross-border travel is back to pre-pandemic levels and that’s a very positive thing for Airbnb Inc. Another positive factor that sets Airbnb apart from traditional hotels is its business model, as mindful travelers of their budget will tend to stick to short-term rentals. expensive hotels and on the other hand hosts will also systematically rent out the properties instead of passive income. Additionally, Airbnb is insulated from the rising costs of commodities like fuel and labor that are affecting companies like Uber Technologies and Lyft and have helped Airbnb weather inflation fears in the US. United States. Additionally, the flexibility offered by employers to work from anywhere has been a boon for Airbnb and average trip length has increased by 15%, with stays longer than seven days constituting nearly half of gross overnight stays. reserved, and all this led to an excellent recovery. in the quarterly results.
- Airbnb’s strong first quarter results – Airbnb announced exceptional results for the first quarter of the 2022-23 fiscal year on May 3.rd 2022. The results exceeded Wall Street expectations in terms of revenue and earnings. It posted revenue of $1.51 billion and a loss of $0.03 per share against market expectations of revenue of $1.45 billion and a loss of $0.29 per share. A total of 102 million nights and experiences have been booked, which is an all-time high for the company. The important factor is that not only the number of nights has increased, but also the average length of stay and the average price of these stays. Growth on multiple fronts drove free cash flow (FCF) which rose 146% to a new record high of $1.2 billion in the first quarter. Its total cash and cash equivalents increased by approximately 40% to $9 billion. These results are significant not only because they exceeded market estimates, but also because they exceeded pre-pandemic revenue and bookings. All of these factors have prompted management to upgrade the second quarter and full year guidance.
- Revised Guidance for Q2 and Full Year – Against the backdrop of strong quarterly results, management has revised its future guidance. The company now expects revenue to grow 56% to 64% year-over-year in the second quarter. Revenue is expected to be between $2.03 billion and $2.13 billion. Wall Street analysts also adjusted their estimates after the conference call for the full year. Current estimates are nearly double from previous estimates three months ago. Previously, full-year earnings estimates were $0.97 for full year 2022 and $1.67 for fiscal year 2023 per share, which was revised to $1.92 per share for the current fiscal year and $2.49 per share for fiscal 2023.
- The effect of the Russian-Ukrainian war – While the Russia-Ukraine war has had a negative impact on almost every industry across the world, and it has affected the tourism industry the most, but there has been some sort of positive influence on Airbnb Inc. Second-quarter estimates are updated even as the Russia-Ukraine war disrupts the market. The reason for this is that this company pointed out in the first quarter that users had booked Airbnb rentals in Ukraine even though they had no intention of traveling there. It was seen as a way to give money to Ukrainian hosts. Due to this trend, 600,000 nights were booked in Ukraine during the first quarter with a gross booking value of $20 million. The main highlight of the fact above is that it shows how it can overcome geopolitical tensions in less conventional ways and create revenue.
- Available at cheaper valuations – Finally, the fact remains that Airbnb is down 28% in the last month despite an exceptional performance in the results of the quarter. Growth stocks like this are judged by price-to-sales ratio and Airbnb trades at a P/S ratio of 16, which is almost all-time low since its IPO in 2020. In other words, the stock price went down where it started trading. after the IPO, but sales increased by almost 80% during this period.
Airbnb Stock Forecast: Latest Tweet
Airbnb Stock Forecast: Factors Likely to Lower It Going Forward
- The number of hosts is constant – Airbnb is like a link between hosts and travelers and is highly dependent on the number of hosts. To further increase income, it is mandatory to increase the number of hosts. But the problem with Airbnb is that the number of hosts has remained at 4 million since it started listing. If the number of hosts does not increase in the future, profitability and income may suffer, because the recovery we are seeing is due to the tendency of people to compensate for the times of Covid by going out more and more , once this normalizes, it’s of paramount importance to constantly add hosts to offer new places to stay for guests.
- Bad global signals and inflation fears – Finally, it looks like the bear market has hit the US. Over the past six months, the Nasdaq has fallen 26%. An index is in correction mode until it falls 25%, and it enters bearish territory if it falls above 30%. The type of fall we are witnessing recently was only seen at the time of the Lehman Brothers collapse and during the Covid 19 pandemic. well financially. The same goes for Airbnb Inc. It has fallen 40% in the last six months and around 28% in the last 30 days. It is not certain that this period will reverse and that the market will reward the best performing companies. Following poor global signals, Airbnb shares may fall further.
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Airbnb Stock Forecast: Conclusion
It is true that Airbnb has corrected 40% in the last six months, but this in itself represents a golden opportunity to enter this growth stock. The company should also take advantage of the spring and summer season. Additionally, management is offering new features such as “I am flexible” which drives customers to less popular locations and increases bookings.
Airbnb has strong fundamentals, good management and a great business model and the recent drop due to external factors provides an opportunity to charge this growth stock, but expect further decline in the near term due to selling on world markets.
-Vineet Agarwal
Note: Crowdwisdom360 gathers forecasts and data from all over the net and has no internal views on likely stock or cryptocurrency trends. Please consult a registered investment advisor to guide you in your financial decisions.
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