Is It Time To Buy Or Sell Airbnb Stock? What the Fundamentals and Action on the ABNB Stock Chart Say

Airbnb Stock

Since its Nasdaq debut in December 2020, Airbnb stock (NASDAQ:ABNB) has mesmerized and piqued the interest of investors in growth stocks. The price of ABNB stock from its initial public offering of $68 per share rose as much as 223%, reaching an all-time high of 219.94 on February 11, 2021. However, the subsequent performance has mainly disappointed.

The challenge posed by several strains of Covid-19, especially the delta and omicron versions, was felt by the tourism sector in 2021. In contrast, Covid-19 cases have dramatically decreased in most continents as of 2022. Many nations no longer mandate quarantine or testing of arriving passengers who can demonstrate that they have received the necessary vaccinations.

Summertime crowding at major airports around the U.S. indicated a rise in tourism. Additionally, it looks like the autumn travel season was strong.

Is the Airbnb Stock Really Bouncing Back This Time?

Airbnb has some good news (NASDAQ:ABNB). And shares are still struggling to move higher. The longer-term downward tendency is still present, though. Has 86.71 been set as a low by ABNB? Although a 21% increase from its recent low of 99.71 is impressive, it is still difficult to predict at this time.

Compared to the S&P 500’s 8.7% increase from its October low of 3491, this gain is favorable.

As a matter of fact, ABNB is still attempting to go back above its declining 10-week moving average. On a daily chart, Airbnb, down 4%, is shown just below the stock’s 50-day line.

The relative strength line for ABNB has gradually started to increase again, which is also encouraging.

As a result, since late June, the stock has been slightly outperforming the S&P 500.

The San Francisco-based corporation announced huge earnings on August 2. A net loss of 11 cents in the same period last year has drastically changed to earnings of 56 cents per share. Its second biggest quarterly sales ever saw a 58% increase in sales, reaching $2.1 billion. Also outstanding, The top line had a significant increase on top of a 299% growth in Q2 of 2021.

On the evening of November 2, Airbnb intends to release its third-quarter financial results. According to Yahoo Finance, median analyst projections are for earnings to increase 19% to $1.45 per share on revenues of $2.84 billion, up 27% from the prior year. From $1.14 to $1.69 is estimated to be the profit.

Is Airbnb stock a good investment right now? Or should I sell and take my losses?

In terms of fundamentals, technical analysis, and mutual fund ownership, this article examines every aspect of the pioneer in leisure travel. All of these components go into CAN SLIM, IBD’s seven-point paradigm for effective growth stock investing that is based on research.

Current Airbnb Stock

A $215 price objective was maintained by CFRA in March. The investment bank increased its profit expectation for the fiscal years 2022 and 2023 from $1.16 to $1.33 per share and $2.21 from $1.16.

The current consensus projection on the Street, meanwhile, continues to rise. According to the consensus of analysts, profits of $2.17 per share will be achieved in 2022 (up from a net loss of 57 cents in 2017) and $2.58 (up 19%) in 2023.

Clearly, ABNB is still trying to bottom out and is still in base-building mode. In December 2020, shares began trading publicly at $68 each.

The stock made a crucial move toward setting itself up for a fresh breakout in late July when it bullishly crossed back above the 50-day moving average after it had fallen as low as 105. The 50-day line was once again broken by ABNB last week.

On a daily chart, the 50-day moving average shows the price development of a stock over the previous 50 trading sessions. You want to see a growth stock cross over and move above its 50- and 200-day lines prior to a possible breakout to new highs.

 

Featured Image – Megapixl © Mohammedsoliman4 

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About the author: Valerie Ablang is a freelance writer with a background in scientific research and an interest in stock market analysis. She previously worked as an article writer for various industrial niches. Aside from being a writer, she is also a professional chemist, wife, and mother to her son. She loves to spend her free time watching movies and learning creative design.