(C) Reuters. Should You Buy Airbnb at $148?
With vaccinations continuing and their effectiveness in curbing the virus’s spread, travel companies like Airbnb (ABNB) will benefit. The company saw its bookings and revenues surge significantly in the first quarter. Is the stock still a buy?.Vacation rental and tourism company Airbnb, Inc. (ABNB) operates an online marketplace for unique homestays and tourism experiences. The company made its Nasdaq debut last December and hit its all-time high of $219.94 on February 11. However, closing yesterday’s session at $148.37, the stock is trading 32.5% below its all-time high. Moreover, the stock lost 20.9% over the past three months and 3.1% over the past five days. Also, ABNB is currently trading lower than its 50-day moving average of $149.80, but higher than its 200-day moving average of $119.60, which does not indicate a robust uptrend.
Although the anticipated travel rebound amid increasing vaccinations around the globe, helped it attract over $10 billion of bookings in the first quarter of 2021, it recorded significant losses. On top of that, the slow recovery of business travel, which constitutes a significant portion of the company’s business, is a major headwind. Since it could take a significant amount of time for ABNB’s business to recover fully from the losses, the stock’s upside is limited.
Here is what we think could influence ABNB’s performance in the near term:
Should You Buy Airbnb at $148?
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