Airbnb's revenue and gross booking bested analysts' estimates
The shares Airbnb Inc (NASDAQ:ABNB) are up 3.8% at $182.06 this morning, following the firm's debut earnings report as a publically traded company. Airbnb posted losses of $11.24 for its fourth quarter, which were wider than analysts' estimates, though its revenue topped expectations. The company also announced better-than-expected gross bookings, suggesting demand in vacation rentals is enjoying a strong comeback.
Analysts are optimistic on ABNB, too. No less than eight analysts lifted their price targets, the highest of which came from Canaccord Genuity, which lifted its price target to $220 from $175. Susquehanna also chimed in, calling Airbnb a "top recovery pick," and adding that while the road to recovery for travel is still slow going, "ABNB is a must-own name" for said recovery.
Coming into today, however, the brokerage bunch was mostly bearish on the stock, with 19 calling it a "hold," compared to 11 "buy" or better ratings. Plus, the 12-month consensus price target of $168.74 stood at an 11.2% discount to last night's close.
Echoing this pessimism, short sellers have been building their positions, with short interest up 26.6% in the last two reporting periods. Now, the 11.62 million shares sold short make up a sturdy 16.7% of ABNB's available float, which could put some wind at the equity's back, should today's positive earnings reaction spook some of these shorts.
It's been a choppy ride for ABNB since going public back in December, though the equity has managed to tack on over 25% this year. While the equity's record highs just below the $220 mark are still proving to be elusive, its newly formed 40-day moving average looks like it could move in as support going forward.