#stocks #investments #Airbnb
- About Airbnb.
- The value of the shares.
- Consensus rating of AirBnb stock.
- Conclusion.
About Airbnb
Airbnb (ABNB) is a company that has created an alternative accommodation platform offering short-term rentals to tourists. Property owners and travelers can contact each other through this platform.
Overall, the stock has lost 55% from its highs to lows. This is a harbinger of an impending recession and falling demand.
However, despite the disappointing outlook, the company stands a good chance of recovering from the recession.
The hotel business was one of the most vulnerable during the pandemic, seemingly the most likely to recover, but the stormy winds of the approaching 2023 recession are already rocking the company’s ship.
The strain on consumers’ pockets is growing and demand for rental properties could drop soon, all depending on the extent of the recession, although at the moment demand continues to be strong.
The company has already been forced to lay off a quarter of its staff in the second quarter to deal with the crisis.
However, according to Airbnb CEO Brian Chesky, the company predicts stability in the third quarter.
If the recession is mild, the company could be considered prepared. If interest rates cause a more serious recession, the shares of all companies associated with leisure and tourism could go down.
However, despite the disappointing outlook, the company stands a good chance of recovering from the recession.
The hotel business was one of the most vulnerable during the pandemic, seemingly the most likely to recover, but the stormy winds of the approaching 2023 recession are already rocking the company’s ship.
The strain on consumers’ pockets is growing and demand for rental properties could drop soon, all depending on the extent of the recession, although at the moment demand continues to be strong.
The company has already been forced to lay off a quarter of its staff in the second quarter to deal with the crisis.
However, according to Airbnb CEO Brian Chesky, the company predicts stability in the third quarter.
If the recession is mild, the company could be considered prepared. However, if interest rates cause a more serious recession, the shares of all companies associated with leisure and tourism could fail and go under.
The value of the shares
The company’s shares are currently trading at $117.03, still recovering from the $170 drop in April.
Airbnb stocks 1w graph. Source:TradingView
Analysts are increasingly doubtful that the Fed will be able to secure a rate cut next year and the much anticipated “soft landing”. Some experts are therefore inclined not to invest in the business just yet, but to wait for better times.
Airbnb is ahead of the competition.
Despite the difficulties it is going through, the company continues to be the best among its competitors. One advantage is a beautifully developed network that hardly anyone else can match.
The company is also always willing to make positive changes for the comfort of hosts and guests. In an attempt to reduce the risks for hosts associated with parties and possible damage to property, Airbnb has installed new technology to detect guests who use the platform to host parties in their rental accommodation. A guest can be locked out of the platform as early as the booking stage if they are found to be planning a rowdy party.
Consensus rating of AirBnb stock.
Source:Tipranks
Currently, the stock has moderate buy status, based on 12 analysts’ buy recommendations, 17 hold recommendations and one sell recommendation.
The target price is $135.4 per share, the highest price is $197 and the lowest price is $95 per share.
Conclusion:
ABNB is well positioned to survive next year’s recession. But until then, more share declines are possible. Investors need to trust the broad market before investing in these stocks. It may be worth taking a closer look at the travel business when the recession storm has abated a bit.
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