A resistance line has formed in the chart of Airbnb Inc. (ABNB). The stock is also supported by a rising trendline. If the stock breaks through its resistance, a breakout is expected. Read more to learn how to take advantage of this trading opportunity.Airbnb Inc. (ABNB) is the world's largest online alternative accommodation travel agency, also offering booking services for boutique hotels and experiences. Listings from the company's 4 million hosts are spread over 220 countries and 100,000 cities. Transaction fees for online bookings account for all its revenue.
The company had a solid second quarter where it beat expectations in both earnings and revenues. ABNB benefited from pent-up travel demand as people got vaccinated and many travel restrictions were lifted. The firm has also expanded into other hospitality options such as outdoor and nature activities.
ABNB also has a strong balance sheet. At the end of the second quarter, the company had $7.4 billion in cash on hand compared to no short-term debt. This led to a Quality Grade of B in our POWR Ratings system. Revenue is expected to rise 68.3% for the year, while earnings are forecasted to jump 91.2%.