Invest in Airbnb Inc (ABNB) with DotBig Forex Broker
Airbnb Inc. is the company that operates the Airbnb platform. This is one of the most popular platforms for searching for and booking apartments in the US. People from all over the world can use it to quickly rent places to stay. The main sources of the revenue are commissions charged from users who are willing to share their apartments.
The Airbnb website has impressive traffic, which significantly contributes to the increased earnings. In the USA, Airbnb holds 5% of traffic in the travel industry, which allows it to be the No1 travel platform in the US.
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Airbnb has become so popular because it promotes not very popular locations, which is often a benefit for both visitors and hosts. How does it impact the Airbnb stock price? Is it a worthy investment in 2022?
Performance of the Company
On May 3, the company released its financial report for the first fiscal quarter of 2022. Surprisingly, despite the fact that ABNB stock is declining today, the company managed to outperform the predictions. The management expected to generate $1.45 billion, but by the end of the quarter, the total sum amounted to $1.51.
The positive results are related to the increasing number of bookings. Airbnb reported more than 102 million nights and experiences booked, which is the best result in the company’s history.
High earnings in the first quarter might indicate positive performance for the remaining months as well. For the second quarter, Airbnb expects its revenue to reach around $2 billion. If the estimates are correct, this might cause the ABNB stock price to go higher.
Such ambitious performance makes financial analysts think that in 2022 Airbnb will generate more total earnings than $5.9 billion in 2021. It’s a common practice for this company, despite the declining 2020.
Key Events
- The company is traded publicly since December 2021. The ABNB stock wasn’t listed on any exchange when the pandemic, which made a lot of travel stock dropping, started. However, the ABNB stock didn’t manage to avoid the pandemic impact completely. In December 2021, a spike of new COVID-19 cases took place, due to the spread of Delta and Omicron variants. This made the ABNB stock drop 13% in a week.
- The ABNB stock was expected to increase in price due to good financial performance at the beginning of 2022. Besides, the release for the first quarter was quite positive. However, in April, the S&P 500 index fell 8.8%. This contributed to the general market volatility. As a result, the ABNB stock dropped 11% in a month.
Trading Conditions with DotBig
The best option to benefit from investing is to trade Airbnb stock with DotBig. The DotBig company has the best selection of stocks to invest in and the ABNB stock is one of them. Buy and hold the assets with the live account on DotBig ltd and use the only top-notch trading instruments to see when it’s the best time to buy more or sell. The DotBig company is the best place for beginning investors!
Pros
- The ABNB stock is traded at the lowest price in its history – $102 per share. This is a great chance to enter this competition. Because the decreasing price isn’t determined by poor financial performance. The reality is the opposite – the company shows great performance and this might cause a further surge in stock price rates.
- The declining ABNB stock price means that the asset is in the bear market. It occurs when prices of securities go down. It might be scary to invest in such assets, but with the stable performance of Airbnb, its investors shouldn’t be afraid of anything.
- Airbnb has a great business model. This helped the company to stay afloat even during the most severe periods of the pandemic.
- Although Airbnb participates in the travel industry, it doesn’t have direct competitors that offer the same services.
- Airbnb doesn’t operate real estate, which helps to avoid a lot of operating expenses.
- Airbnb is constantly adding new features to its website and mobile application. It helps the solution to keep up with the latest trends.
Cons
- Airbnb outperforms the expected earnings. However, except for this, the company also suffer bigger-than-expected net losses. The stock of the company might devalue if the business reports losses that discourage the investors to put their money into the project.
- The fact that the Airbnb concept is slightly disconnected from the general industry might seem complex to investors.
Final Thoughts
We suggest that ABNB stock is a worthy investment. Although it might decrease in the near future due to its bearish nature, the long-term investment will probably appear beneficial. The current Airbnb stock price is low enough for beginning investors to enter this game and benefit from it when the asset price will go up. Consider investing in ABNB assets with DotBig and everything will be much easier for you!
