Airbnb (ABNB.US) was valued at just over $100 billion at the time of its market debut in the biggest U.S. initial public offering (IPO) of 2020, which underscored investor appetite for app-based technology firms and hopes for steady growth as travel restrictions ease and the global food delivery business continues to expand.
However Airbnb stock fell sharply yesterday after several analysts suggested that the company’s spectacular stock market debut leaves the stock with minimal near-term upside. Of 19 analysts who initiated coverage of the stock, 12 rated it a hold, six said buy and one said it is overweight, according to FactSet. The analysts who rated the stock a buy say that the company has a unique offering and opportunity as travel continues to be affected by the coronavirus pandemic. However Airbnb is still one to two years away from profitability and the key risks include regulation, competition, rising customer acquisition costs, and weaker travel recovery from the COVID-19 pandemic, according to Goldman Sachs (GS.US).
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Airbnb (ABNB.US) shares fell as much as 9% in the first session of 2021, however today buyers are trying to recover losses. Stock is currently testing major resistance at $140.90. In case of a break higher, next target for bulls lies at the upper limit of the downward channel. On the other hand, if sellers will manage to regain control, then another downward impulse towards support at $122.81 could be launched. Source: xStation5
