I also found an article on Reuters, which reported Airbnb’s forecast and predictions. The article said that Airbnb announced that it expects to see fewer bookings and lower average daily rates in second quarter of 2023, which sent the company's shares down 11.5% in after-hours trading. * U.S. travel firms, which have benefited from higher prices and hybrid work arrangements, are tempering their outlook for 2023 as pre-pandemic travel patterns return, and customers seek cheaper lodging due to high inflation and recession fears. To remain competitive, Airbnb is equipping hosts with new tools to normalize pricing and launching its marketing campaigns earlier in the year to attract cost-conscious travellers ahead of the peak summer season. The company predicts second-quarter revenue of between 2.35 billion and 2.45 billion USD. Now, results for second quarter are not expected to be as high as in the middle of the season. It is completely normal, at least from my point of view, that people rather travel in summer. And I made a note about one other important factor – Covid is almost gone, or in other words, countries lifted restrictions. So finally, we will be able to take a normal vacation again. But, with higher prices. Fundamental analysis was completed, so I opened the chart.
Yesterday, the price closed at 127 USD, however, as I mentioned before, I checked the premarket price on Google Finance, and the fall is really happening. At the time of writing this diary, the price was 111.91 USD in premarket, which indicates a fall of around 12%. *
Despite the fall, I decided to invest in the stock when market will open. Of course, I will play a longer game and will hold it to at least middle of summer. Depending on events and willingness of people to travel and book vacancies through Airbnb.
Movement of Airbnb stock. *
* Past performance is no guarantee of future results.
Link to a 5-year chart: https://tradingeconomics.com/abnb:us