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why airbnb stock is falling

by Trenton Pagac Published 3 years ago Updated 2 years ago
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ABNB stock is overvalued. Meanwhile, the biggest reason ABNB stock has dropped is that investors are getting cognizant of its valuations, which look a bit too stretched. Airbnb stock trades at an NTM EV-to-EBITDA multiple of 21.8x.

However, the number is likely to fall sharply in 2020 as Covid-19 has hurt the vacation rental market, with total Revenue likely to fall by about 30% year-over-year.Jan 11, 2022

Full Answer

Should you buy Airbnb stock right now?

Jan 10, 2022 · Airbnb Inc (NASDAQ: ABNB) is trading lower Monday following a downgrade from Piper Sandler. Piper Sandler analyst Thomas Champion downgraded Airbnb from an Overweight rating to a Neutral rating and...

Is Airbnb overvalued?

Mar 05, 2021 · Shares of Airbnb ( ABNB -4.39% ) are down 2.5% as of 2:45 p.m. EST Friday afternoon, and I have to say that even with the Nasdaq Composite Index going all helter-skelter on us today -- falling 2.5 ...

Why is abnb stock dropping?

Jun 01, 2021 · Airbnb (NASDAQ: ABNB) stock is down by close to 15% from its all-time highs, trading at about $188 per share, due to the broader sell-off in high-growth technology stocks. However, the outlook for...

Is Airbnb stock a buy?

Feb 23, 2021 · Shares of virtual hotelier Airbnb ( ABNB -1.42% ) got caught up in the tech stock flash crash Tuesday morning, falling more than 10% …

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Why is Airbnb stock going down?

Airbnb Stock Today a new loss of 58 cents during the coronavirus-plagued quarter in 2020. The positive earnings also crushed Wall Street's view for 4 cents. Revenue ripped 78% higher to $1.53 billion, accelerating from a 67% jump in the third quarter of 2021. Full-year revenue grew 77% to a record $5.99 billion.Apr 2, 2022

Is Airbnb a good stock buy?

Fortunately for investors, despite all its excellent prospects, Airbnb is selling at its lowest price-to-free-cash-flow ratio in its young history as a public company. At 43, it's down from a peak of over 240 in early 2021.Mar 18, 2022

What is the prediction for Airbnb stock?

Stock Price Forecast The 30 analysts offering 12-month price forecasts for Airbnb Inc have a median target of 205.00, with a high estimate of 250.00 and a low estimate of 150.00. The median estimate represents a +24.69% increase from the last price of 164.41.

Will Airbnb stocks recover?

The Q4 2021 results show that Airbnb is rebounding from the pandemic even faster than many other players in the travel industry. In addition, the company gave guidance that indicated the recovery remains strong into 2022, all of which sent the stock up 3.6% the next day after the report was released.Feb 23, 2022

Is Airbnb a good investment 2022?

Airbnb's strong growth and appealing valuation make it worth a look in 2022. Airbnb ( ABNB -3.27% ) has become a household name in the world of travel. For both travelers in search of places to stay and hosts who offer their homes to guests, Airbnb has become the go-to service.Jan 7, 2022

Is Airbnb undervalued?

Although we think Airbnb stock is slightly overvalued at current prices of $135 per share, the risk to reward profile for Airbnb has certainly improved, with the stock now down by almost 40% from its all-time highs seen in February. We value the company at about $120 per share, or about 15x projected 2021 revenue.Jan 27, 2022

Is Airbnb stock a buy sell or hold?

The Historical Cash Flow Growth is the longer-term (3-5 year annualized) growth rate of the cash flow change....Momentum Scorecard. More Info.Zacks RankDefinitionAnnualized Return1Strong Buy24.93%2Buy18.44%3Hold9.99%4Sell5.61%2 more rows

Is Airbnb a Buy Sell or Hold?

Airbnb has received a consensus rating of Hold. The company's average rating score is 2.44, and is based on 15 buy ratings, 16 hold ratings, and 1 sell rating.

What is the target price for Amazon stock?

Stock Price Target AMZNHigh$5,000.00Median$4,087.50Low$2,800.00Average$4,074.48Current Price$3,102.97

And does it deserve it?

I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.

What happened

Shares of Airbnb ( NASDAQ:ABNB) are down 2.5% as of 2:45 p.m. EST Friday afternoon, and I have to say that even with the Nasdaq Composite Index going all helter-skelter on us today -- falling 2.5% initially only to turn around, and now heading for a 1% gain -- this is kind of a weird reaction investors are having to Airbnb's latest news.

So what

Well, now it has. Just after midnight Thursday, Airbnb revealed that it will be paying -- better sit down for this -- a grand total of 0% interest on this $2 billion it is borrowing.

Now what

Why wouldn't these lenders simply buy Airbnb stock now if they want it, at the company's $176 and change share price, you ask?

How much revenue does Airbnb make in 2019?

The portion of Gross Bookings that Airbnb recognizes as Revenue rose from $2.6 billion in 2017 to around $4.8 billion in 2019. However, the number is likely to fall sharply in 2020 as Covid-19 has hurt the vacation rental market, with total Revenue likely to fall by about 30% year-over-year.

How much is Airbnb worth?

Airbnb is currently valued at a whopping $90 billion, while DoorDash is valued at about $50 billion.

What is Trefis financial?

Trefis is an interactive financial community structured around trends, forecasts and insights related to some of the most popular stocks in the US. Whereas most finance sites simply give you the facts about where a stock has been and what a company has done in the past, Trefis focuses entirely on the future.

Is Airbnb going down in 2020?

In comparison, Airbnb’s revenue was down only 30% in 2020. While we think that the long-term outlook for Airbnb is compelling, given the company’s strong growth rates and the fact that its brand is synonymous with vacation rentals, the stock is expensive in our view.

Is Airbnb stock down?

Airbnb (NASDAQ: ABNB) stock is down by close to 15% from its all-time highs, trading at about $188 per share, due to the broader sell-off in high-growth technology stocks. However, the outlook for Airbnb’s business is actually very strong.

Yes, Airbnb got caught up in Tuesday's tech rout. But did you hear what happened on Monday?

I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.

What happened

Shares of virtual hotelier Airbnb ( NASDAQ:ABNB) got caught up in the tech stock flash crash Tuesday morning, falling more than 10% in early trading as the Nasdaq fell 4%.

So what

Loop Capital, you see, upgraded Airbnb shares to "buy" yesterday, ahead of the company's first earnings report as a publicly traded company, due out Thursday, Feb. 25. Loop assigned the shares a $240 price target, which implies about 30% upside to the stock, according to StreetInsider.com.

Now what

The most intriguing part of Loop Capital's analysis -- for stock investors -- is this observation: Third-party analytics firm AirDNA has observed that "ABNB unit volume has shown strong directional correlation with UBER rideshare bookings over the 11-quarters of data on record."

How much revenue does Airbnb make in 2019?

The portion of Gross Bookings that Airbnb recognizes as Revenue rose from $2.6 billion in 2017 to around $4.8 billion in 2019. However, the number is likely to fall sharply in 2020 as Covid-19 has hurt the vacation rental market, with total Revenue likely to fall by about 30% year-over-year.

How much is Airbnb worth in 2021?

The company is valued at about $130 billion, or about 31x consensus 2021 revenues. Airbnb’s sales are likely to grow by about 37% this year. In comparison, online travel giant Expedia which also owns Vrbo, a growing vacation rental business, is valued at about $20 billion, or just about 3x projected 2021 revenue.

How many countries does Airbnb operate in?

There are a couple of long-term factors as well. Airbnb’s platform scales much more easily into new markets, with the company’s operating in about 220 countries compared to DoorDash, which is a logistics-based business that has thus far been restricted to the U.S alone.

Is Airbnb going down in 2020?

In comparison, Airbnb’s revenue was down only 30% in 2020. While we think that the long-term outlook for Airbnb is compelling, given the company’s strong growth rates and the fact that its brand is synonymous with vacation rentals, the stock is expensive in our view.

Is Airbnb stock down?

Airbnb (NASDAQ: ABNB) stock is down by close to 15% from its all-time highs, trading at about $188 per share, due to the broader sell-off in high-growth technology stocks. However, the outlook for Airbnb’s business is actually very strong.

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