Airbnb plunges after Morgan Stanley downgrade

6:46 PM 7 December 2022

Airbnb (ABNB.US) stock fell over 3.5% on Wednesday after Morgan Stanley downgraded the vacation rental company to underweight from equal-weight due to slowing growth in listings and diminishing room night demand. New price target of $80 per share implies around 11% downside potential from current levels.

"ABNB's required forward supply has been a key debate since IPO and our new supply and occupancy deep dive speaks to budding growth headwinds," the Morgan Stanley analysts said.

"Our model for decelerating supply speaks to how it is increasingly important for ABNB to drive demand growth through higher occupancy and/or more nights available per listing," the analysts wrote in a client note.

Airbnb (ABNB.US) stock launched today's session with a bearish price gap and is testing the key support zone at $86.20, where the all-time low is located. Should a break lower occur, then price would enter uncharted territory and sell-off may intensify. Nevertheless buyers seem to regain some control in the afternoon and as long as price sits above the aforementioned level, upward correction towards downward trendline may be launched. Break higher would be a first signal of potential trend reversal, however until this happens main sentiment remains bearish. Source: xStation5

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits