Stock Market »Airbnb Results Review & ABNB Stock Analysis

Airbnb is expected to benefit from the travel revival following the release of Q2 results this week, but questions remain about the outlook for the rest of the year. We explain what to expect and look at how ABNB shares might react to the stock market.

When will Airbnb release its Q2 results?

Airbnb will release its second quarter results after the US markets close on Thursday, August 12.

Airbnb results snapshot “What to expect from results

Airbnb said the growth in tourist numbers kicked off strong when first quarter results were released in May as people resumed travel thanks to progress in vaccination programs and easing restrictions.

This allowed Airbnb to return to revenue growth for the first time since the crisis and surpass pre-pandemic revenue levels, with less losses. While reservations still have to go through to full recovery, revenue rebounded faster thanks to significantly higher average daily rates, mainly driven by the North American market.

Investors expect this trend to continue following the release of Q2 results. The number of bookings will be significantly higher compared to last year, as they will be flattered by the weakness of comparisons from the previous year, when restrictions were introduced and the number of cancellations increased. However, Airbnb said the number of bookings will be lower than before the pandemic.

However, gross bookings are expected to exceed pre-pandemic levels due to higher average daily rates, and overall revenues will be in Q2 2019. Airbnb said adjusted EBITDA is expected to break even with a slight positive.

Analysts expect second-quarter revenue to reach $ 1.25 billion, up from $ 334.8 million a year earlier, when demand eased due to restrictions. Adjusted EBITDA is expected to be $ 41.2 million out of a $ 397.5 million loss, while the net loss will narrow to $ 281.2 million from $ 575.6 million.

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It will also benefit from the first quarter of 2021 as the recovery picks up pace. Airbnb reported $ 887 million in revenue, an adjusted EBITDA loss of $ 59 million and a sizable net loss of $ 1.17 billion in the first three months of the year. Notably, the large loss was due to one-off expenses of $ 782 million not related to the day-to-day operations of the company.

While there is no doubt that Airbnb will see significant improvement in the second quarter, the forecast will be closely monitored after the company warned in May that it was “too early to predict whether the recovery will continue at the same pace in May.” Second half of 2021 “. He said that while the North American market remains robust, uncertainty is higher in other parts of the world.

However, Airbnb is under pressure to steadily increase adjusted EBITda throughout the year following the announcement of plans to cut variable costs, tightly manage fixed costs, and cut marketing costs while making it more efficient. This should lead to an increase in profits in the second half of the year compared to the first.

Airbnb listed on the Nasdaq last December for an IPO price of $ 68. The stock immediately found a higher position and ended its first day of trading closer to $ 140, but the company has struggled since then to find a higher position. Airbnb shares hit an all-time high on the stock exchange of $ 212 in February 2021, but are trading closer to $ 150 today.

IN brokers remain bullish on Airbnb’s forecasts, with an average stock purchase valuation and a target price of $ 174.61, about 16.8% above the current share price.

What’s in store for Airbnb’s stock market price?

Turning our attention to the chart, ABNB’s share price has tested support at $ 130 twice in the past three months, but with each fall it has found new buy demand. This area should provide a basis for any near-term lows, but it remains to be seen if the stock can definitely break $ 155 and displace the mid-term bias in favor of the bulls.

Airbnb Daily Schedule (ABNB)

Since the last “trend” leading up to the current range was bearish, traders can exercise caution with short-term buy trades until there is confirmation of a breakout.

Joshua Warner, “ Official site

Denial of responsibility: The information and opinions contained in this report are for general information only and do not constitute an offer or invitation to buy or sell foreign exchange contracts or CFDs. Although the information contained in this document has been taken from sources believed to be reliable, the author does not guarantee its accuracy or completeness and is not responsible for any direct, indirect or consequential damages that may arise as a result of reliance on someone else. such information.

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