6:46 PM · 7 December 2022

Airbnb plunges after Morgan Stanley downgrade

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

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