Since its first day of trading on the Nasdaq in December 2020, investors in growth stocks have been mesmerized and captivated by Airbnb stock. The original public offering price of ABNB stock was $68 per share. On February 11, 2021, the stock reached an all-time high of 219.94, representing a rise of as much as 223% from that price. However, the performance since then has, for the most part, been unsatisfactory.
The tourism sector was confronted with the difficulty provided by numerous strains of Covid-19 in 2021, including the delta and omicron versions of the virus. However, the situation is very different in 2022; the number of known instances of Covid-19 has significantly decreased throughout most continents. Many nations have done away with all quarantine and testing procedures for visitors as long as they can confirm that they have had their full vaccinations.
A rise in tourism may be inferred from the enormous numbers of passengers seen at major airports around the United States during the summer.
Is This Time Different for Airbnb Stock? Is It Making a Comeback?
Good news for Airbnb (ABNB). And stock prices continue to battle to sluggish but steady increase. On the other hand, the longer-term downward trend has not been broken. Does 86.71 represent a new low for ABNB? Even though shares are attempting to go up for a third week in a row, it is difficult to tell what will happen right now.
Indeed, ABNB is still striving to get back above its declining 10-week moving average to gain bullish momentum. As can be seen on an updated chart, Airbnb is currently trading below the stock’s 50-day line, which has been progressively moving upward.
In addition, the relative strength line for ABNB has gradually started to ascend again.
This indicates that the stock has been performing somewhat better than the S&P 500 since June.
The corporation, with its headquarters in San Francisco, announced abundant earnings on August 2. The previous year’s same quarter ended with a net loss of 11 cents; thus, this year’s earnings of 56 cents per share represent a significant turnaround. The company’s revenue increased by 58% to $2.1 billion, the company’s second-largest revenue for any quarter. Also impressive? A 299% increase in revenue was seen during the second quarter of 2021, leading to a significant top line boost.
Is it a good time to buy Airbnb stock? Or should I just admit defeat and sell everything?
This article provides an in-depth analysis of all aspects of the pioneer in the leisure travel industry, including fundamentals, technicals, and mutual fund ownership. IBD’s research-driven seven-point paradigm for effective growth stock investing is known as CAN SLIM, and all of these components are incorporated into it.
The decision to maintain a price objective of $215 was made by CFRA in March. Additionally, the investment bank increased its profits projection for the fiscal year 2022 from 76 cents per share to $1.33 per share, and it increased its earnings projection for the fiscal year 2023 from $1.16 per share to $2.21 per share.
On the other hand, the current average projection on Wall Street is climbing incrementally higher. Following a year in which they posted a net loss of 57 cents per share, analysts now anticipate a profit of $2.17 per share in 2022 and $2.58 per share in 2023, representing a 19% increase.
It is clear that ABNB is continuing its base-building phase and attempting to bottom out. In December 2020, the shares were offered to the public for $68 each.
Late in July, the share price made a decisive bullish crossover back above the 50-day moving average. This was essential in preparing the share price for a fresh breakout, as the average dropped to as low as 105.
A company’s price movement over the last 50 trading sessions may be tracked on a daily chart using the 50-day moving average. You want to see a growth stock soar above both its 50-day and 200-day lines and drag them higher before you get excited about the prospect of it breaking out to new highs.
Featured Image: Megapixl © Stanko07
Author Valerie Remorosa 
