Airbnb stock forecast earnings preview: Rising travel demand makes stock attractive

When Airbnb stock forecast (NASDAQ: ABNB ) releases its latest quarterly report later today, what investors will be most interested in is whether the U.S.

The platform’s second quarter earnings report is also significant as bookings during the ongoing summer season may provide some insight into the level of travel demand ahead of the winter holiday period.

Early signs suggest that San-Francisco-based Airbnb stock forecast is in a good position to exceed analysts’ expectations. Airbnb received a rare double upgrade in buy ratings from Gordon Haskett last month. The firm sees the improving trend, particularly in Europe, as a boon for the holiday-rental stock.

San Francisco-based Airbnb stock forecast should see sales rise 42% to $ 1.26 billion from last quarter, according to analysts’ consensus forecast , while loss per share fell from $1.95 to $0.36.

The latest earnings reports from other travel-related companies also reveal that after a year of lockdown and border closures from the Covid pandemic, the travel sector has started showing green shoots of recovery.

Expedia Group (NASDAQ: EXPE ) said last week that its second-quarter sales more than tripled to $2.11 billion and gross bookings rose to $20.8 billion. Both are at the top of analysts’ estimates.

Booking Holdings (NASDAQ: BKNG ), the largest online travel agency, also reported better-than-expected growth in room night reservations, and expressed optimism that travel speeds will continue to improve as more people are vaccinated. And restrictions are eased.

rough road to recovery

Despite these early signs of a rebound in travel activity, investors aren’t showing much enthusiasm for Airbnb stock forecast, which is down more than 30% from its February highs. It closed Wednesday at $148.18.

  • Will report Q2 2021 earnings on Thursday, August 12 after closing
  • Revenue Expectation: $1.26B
  • EPS Expectation: -$0.36
Airbnb stock forecast earnings preview
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Airbnb stock forecast Q2 earnings preview: Rising travel demand makes stock attractive

Airbnb stock forecast Q2 earnings preview: Rising travel demand makes stock attractive

Investing.com | 12 August 2021 ,13:51 comment first

  • Will report Q2 2021 earnings on Thursday, August 12 after closing
  • Revenue Expectation: $1.26B
  • EPS Expectation: -$0.36

When Airbnb stock forecast (NASDAQ: ABNB ) releases its latest quarterly report later today, what investors will be most interested in is whether the U.S.

The platform’s second quarter earnings report is also significant as bookings during the ongoing summer season may provide some insight into the level of travel demand ahead of the winter holiday period.

Early signs suggest that San-Francisco-based Airbnb is in a good position to exceed analysts’ expectations. Airbnb received a rare double upgrade in buy ratings from Gordon Haskett last month. The firm sees the improving trend, particularly in Europe, as a boon for the holiday-rental stock.

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San Francisco-based Airbnb should see sales rise 42% to $ 1.26 billion from last quarter, according to analysts’ consensus forecast , while loss per share fell from $1.95 to $0.36.

The latest earnings reports from other travel-related companies also reveal that after a year of lockdown and border closures from the Covid pandemic, the travel sector has started showing green shoots of recovery.

Expedia Group (NASDAQ: EXPE ) said last week that its second-quarter sales more than tripled to $2.11 billion and gross bookings rose to $20.8 billion. Both are at the top of analysts’ estimates.

Booking Holdings (NASDAQ: BKNG ), the largest online travel agency, also reported better-than-expected growth in room night reservations, and expressed optimism that travel speeds will continue to improve as more people are vaccinated. And restrictions are eased.

rough road to recovery

Despite these early signs of a rebound in travel activity, investors aren’t showing much enthusiasm for Airbnb stock, which is down more than 30% from its February highs. It closed Wednesday at $148.18. Airbnb Weekly Chart.

One possible explanation for this underperformance is the ongoing spread of the highly contagious Delta variant which is forcing many countries to reimpose lockdowns and travel restrictions.

Expedia chief executive Peter Kern last week offered a cautionary note to the travel industry’s near-term outlook, saying the road to full travel recovery is bumpy until more of the world is vaccinated. Go.

In our view, these uncertainties should not discourage investors from taking positions in Airbnb, which is looking cheap after this year’s decline. The San Francisco-based company’s relative resilience in a historically bad year for the travel industry is the result of a flexible business model that allowed ABNB to meet customers wherever they wanted to go. This means city dwellers are moving to less crowded, suburban and rural locations and families and groups are looking for a vacation closer to home.

These moves, and the company’s cost-cutting, make ABNB one of the best assets in the travel sector. Analysts at KeyBanc upgraded Airbnb to overweight this month, setting a price target of $180 per share, about 22% higher than the current price.

As noted in Kern’s note:

“Airbnb’s direct traffic leverage and minimal reliance on paid marketing protect the company from [third-party] advertising inflation.

“In an inflationary advertising market, we believe Airbnb has a new catalyst that investors can focus on: the extent to which direct traffic produces a unit economics profit,” the analysts said. The market for travel is returning rapidly, analysts said, which should boost Airbnb’s booking volumes.”

Conclusion

Airbnb stock forecast stock has weakened significantly since its December 2020 initial IPO hit a record high of about $217 in February. That decline, in our view, makes this stock attractive, especially as travel demand is expected to expand gradually. Today’s earnings may provide further evidence to support that bullish outlook.

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