Airbnb stock has gotten quite a mess on the stock market in the past three months. After the all-time high of 175 euros in mid-February, the share of the rental platform went into reverse and closed the last week of trading at 116 euros. This means that Airbnb shares have lost about a third of their value since their peak. What’s even more spicy is that the share is now trading below the price on its first day of trading. Why is the new star of the travel industry weak?
Good sales, poor results
Like all other companies in the tourism industry, Airbnb has been hit extremely hard by the travel restrictions of the past few months in connection with the coronavirus pandemic. Amazingly, Airbnb still managed to increase sales by five percent to $ 887 million compared to the same period last year. The value was well above the expectations of the analysts, who had expected only 715 million dollars.
The situation with the company’s earnings is less positive. The loss of 1.2 billion US dollars was almost four times as high as in the same period last year. Airbnb cited the high cost of loans taken out during the pandemic as one of the main reasons for the miserable result.
Should Investors Sell Right Now? Or is it worth joining Airbnb?
However, the slow normalization of travel worldwide gives hope. Bookings on Airbnb rose year-on-year by over 50 percent to more than 10 billion US dollars and were thus also well above analyst forecasts.
Optimism is the order of the day
How things go with Airbnb stock depends on how normal the summer vacation season can be this year. The Airbnb management is keeping a low profile and has not yet given a forecast for the full year. CEO Chesky is still optically and expects an upturn in travel that the world has never seen before. If Chesky is right, Airbnb stock could also see a big boom.
Should Airbnb Investors Sell Right Now? Or is it worth getting started?
How will Airbnb evolve now? Is your money safe in this stock? The answers to these questions and why you need to act now can be found in the latest analysis of Airbnb shares.
Airbnb: Buy or Sell? Read more here …
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09. May
