Airbnb (NASDAQ:ABNB)
As Tuesday’s market opened higher than expected, Airbnb stock climbed by as much as 4.8%. Trust Securities analysts’ statements that the rise of the gig economy may contribute $54 billion in bookings to firms like Airbnb (NASDAQ:ABNB) may have also caught the attention of some investors.
Airbnb stock had initially risen in the morning. Still, by the afternoon, investors’ concerns about the health of the U.S. economy had caused some of their gains to be lost. As of 2:48 PM ET, the stock price has risen by 2%.
What’s the Reason?
At the opening bell, traders were in a bullish mood. The Federal Reserve Bank of San Francisco’s president Chicago, Charles Evans, expressed doubts about the Fed’s pace of rate hikes in a CNBC interview, which may have contributed to the market’s reaction.
With “three consecutive 75 basis point rises” and “discussion of more” to reach 4.25–4.5% by the end of the year, “you’re not leaving much time to kind of look at each monthly release,” Evans added.
As a result, many investors were more optimistic that the Fed would slow the rate at which it was raising rates.
Investors in Airbnb stock weren’t only absorbing those remarks; they were also thinking about a report from Trust Securities that analysts there believe hybrid and remote work might continue to promote weekend getaways.
Analysts predicted in a letter to investors published on Tuesday that the trend may immediately increase accommodation reservations by $27 billion, compared to pre-pandemic levels, with around $18 billion going to lodging businesses like Expedia, Bookings Holdings, and Airbnb (NASDAQ:ABNB).
In addition, the analysts predicted that this demand increase might free up to $54 billion in U.S. bookings in the long run.
What’s Next?
Even if Airbnb stock is still in the black for the day, its initial optimism has clearly faded. That’s probably because the market started to decline, sending the S&P 500 and the Nasdaq Composite back into negative territory.
Investors are still concerned that the Federal Reserve will continue its aggressive rate hike and cause a recession in the United States. Due to these worries, the stock market has dropped for five days in a row.
Investors predicting how the economy would affect Airbnb stock will undoubtedly cause greater stock price volatility. However, investors should keep in mind that purchasing shares of fantastic firms and keeping them for at least five years is the greatest method to avoid making fear-based investment choices.
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Some experts have made encouraging remarks regarding Airbnb stock, but investors are still skeptical because of economic concerns.
Featured Image – Megapixl © Kaj771
Author Shariq Khan 
