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- 3 Stocks To Rise This Summer: AirBnb
3 Stocks To Rise This Summer: AirBnb
A well-known global marketplace for stays and experiences connecting hosts and their supposed guests online is building up its muscles. Its share price is mushrooming as it added more than 25% since the beginning of June, thanks to Airbnb's rising margins amid the core travel season. The stock is clearly accelerating its uptrend.
Airbnb market caps initially added nearly 50% in 2021, but rolled back. Later on, it came back again to the starting point, and were further sold off in 2022, like many other internet-related stocks. However, it was mostly the domino effect from the falling Wall Street indexes, not connected too much with the company's fundamentals. As soon as general fears of recession stopped to dominate in investors’ minds, inadequately oversold stocks, including Airbnb, began to climb in January and February 2023.
The company itself supported hopes of the investing crowd with even better than expected Q4 2022 profit and sales numbers. The first quarter of 2023 is not in line with the elevated consensus estimates, yet there are many signs that the earnings report on August 10 would be more favourable. Consensus estimates are now at nearly 80 cents of equity per share on revenue of $2.4 billion, compared to $0.48 and $0.18 cents on revenue of $1.8-1.9 billion in the previous two quarters. If those forecasts would become a reality, then the possible target price for Airbnb may approach $200 per share, compared to nearly $140 in midsummer.
The prices of air carriers' stocks are looking optimistic, so that the travelling activity starts to benefit from the post-pandemic recovery at last. This may be an indirect indication for the renting industry as well, and a relatively weaker U.S. Dollar is also supporting foreign vacationers all over the world. Home-sharing businesses are even benefiting from higher interest rates as they used to earn their own difference on money they hold between bookings and stays. Local property managers and traditional hotel booking processes in the U.S. are reportedly subdued by online marketplaces, some analysts including Needham & Company noted. Steve Milo, founder and CEO of VTrips, a company operating more than seven thousand properties in the U.S., is also cited.
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