Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Is Now The Time To Pile Into Airbnb?

By (Sam Quirke )Stock MarketsOct 14, 2021 01:11AM ET
Is Now The Time To Pile Into Airbnb?
By (Sam Quirke )   |  Oct 14, 2021 01:11AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

Like many red hot tech companies that have IPO’d in recent years, Airbnb (NASDAQ:ABNB) has had its fair share of turbulence already. In the immediate aftermath of their IPO in December of last year, their shares dropped 25% before the bulls stepped in and sent them up 80%.

Keep in mind, the decision to go public and the initial few months of trading were both made and done in the shadow of the COVID pandemic which wreaked havoc on Airbnb’s bank account. But the fact that they pushed ahead with the move reflects a level of confidence from senior management that hasn’t always been mirrored by their investors.

Coming towards the end of this past summer, the stock had fallen some 40% from February’s high and you’d have been forgiven for thinking Airbnb was on the verge of becoming the latest incarnation of the tech industry’s Icarus, who flew too close to the sun. But in recent weeks, shares seem to have put in a low, via a strong-looking double bottom, and have been trending steadily northwards. For those of us on the sidelines, there are more than a few reasons to think this could be the start of something bigger and longer lasting.

Fresh Upgrade

Yesterday’s 3.6% jump came off the back of a fresh upgrade from the folks over at Cowen, who moved their rating on the stock from Market Perform to Outperform. They’re expecting the “the dynamic of an alternative in lodging mix to be a permanent trend” and the good news is that Airbnb is noted to be synonymous with the hotel-to-homes lodging shift. In addition, they feel that Street estimates on Airbnb are also underestimating the true potential with a mark for 17% bookings growth in 2022.

This fresh upgrade should provide a solid counterweight to last month’s downgrade from Goldman Sachs, which is surely acting as a drag on any near-term upside. The Goldman team initiated coverage this time last month and gave shares a bearish price target of $132. Analyst Eric Sheridan and team felt that Airbnb investors were “already factoring in a huge travel burst from a more flexible work environment in the future.” The main risk that Airbnb has to deal with now is if that work from the road scenario does not play out. But based on the past couple of weeks, investors and Wall Street alike are starting to believe that it will.

The company’s most recent booking trends, released in August’s Q2 earnings report, have a strong rebound from 2020 showing no signs of slowing down. Gross booking value hit $13.4 billion, well ahead of the $11.2 billion analysts had expected, and an impressive 30% higher than the same number from Q1. That was nothing compared to the year-on-year figures, which showed revenue up about 300% compared to the same period last year, a jump which went a long way to shifting the company’s bottom line back towards the black.

Getting Involved

We’ll hopefully see a reversal from the Goldman team in the coming weeks, particularly if shares can continue to build up some steam. If that weight were to be lifted, there’s every reason to think they could get back towards the $200 level they were just starting to get used to at the beginning of the year.

Aftershocks from the COVID pandemic will undoubtedly come and go, but all the signs are pointing towards the world and society becoming more and more comfortable living with it. That means people will continue to take holidays and adapt their working situation to fit the environment, and Airbnb is well-positioned to capitalize on both these trends.

Their Q3 earnings are due before the end of November and will give us a clear line of sight to both current and expected bookings trends. Unless we’re hit with fresh lockdowns in the meantime, it’s fair to expect those numbers to confirm that Airbnb is back on track and potentially within range of reporting a profit.

Airbnb Stock Chart
Airbnb Stock Chart

Original Post

Is Now The Time To Pile Into Airbnb?

Related Articles

Is Now The Time To Pile Into Airbnb?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email