Level in Airbnb stock could be next breaking point after profits, says Miller Tabak – NBC 7 San Diego
Airbnb announced its earnings after the bell on Thursday, a statement that will provide insight into the impact of the spread of the delta variant of the coronavirus on travel demand.
The company topped revenue and bookings estimates and headed for a strong third quarter, even in the face of the pandemic.
The stock rallied to the report. Shares rose nearly 2% in Thursday’s session.
Matt Maley, chief market strategist at Miller Tabak, said the fundamental setup of travel stocks made him “nervous,” but admits Airbnb’s technical picture looks solid.
“It’s been six months since it has gone down, but it had a nice double bottom here at the $ 132 level in May and July, and since then it has rebounded and broken its trendline going back to March,” he said. Maley told CNBC. “Trading Nation” Thursday before release.
Now the stock needs to clear $ 153 for its reversal to be more concrete, Maley said.
“Following the bullish breakout of the trendline with a nice higher higher, it’s going to be very bullish,” he said. “We just need one more little jump here and that will confirm that the trend has changed from a six-month downtrend path to an uptrend.”
Airbnb shares fell 3% to $ 145 per share as part of the extended trading.
John Petrides, portfolio manager at Tocqueville Asset Management, said Airbnb will likely herald a strong quarter, but it is not enough for him to jump into the action just yet.
“Just like his peers, I think you have to wait and see,” he said in the same interview. “Longer-term Airbnb is a solid business. “
But, after trading sharply higher from its IPO price of $ 68 in December, Petrides is looking for any weakness going forward.
“There might be better entry points to get into this stock, and really all of this space over the next six to eight months or so,” he said. “There is actually better value in the space compared to Airbnb in some of the other competing names that don’t trade at such high valuations.”