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Airbnb Stock Surges on Quarterly Win, Upbeat Forecast

Options volume is running at 12 times the intraday average

Digital Content Manager
May 4, 2022 at 10:07 AM
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Airbnb Inc (NASDAQ: ABNB) is up 7.9% at $156.52 at last check, after the online marketplace for lodging posted smaller-than-expected first-quarter losses of 3 cents per share, and a revenue win of $1.51 billion. The company raised its second-quarter revenue projections above analysts' estimates as well, counting on pent-up pandemic travel demand to drive travel this summer. 

Analysts are having mixed reactions to the blowout quarterly results, though. At least six firms have slashed their price targets on ABNB today, including Barclays to $170 from $185. Meanwhile, another four have raised their price objectives, with Credit Suisse hiking its to $190 from $185. The brokerage bunch is leaning bearish on Airbnb stock, with 13 of 22 analysts in coverage calling it a tepid "hold."

The security has been extremely volatile of late. The shares just yesterday pulled back to the $141 level, after rallies in late March and early April lost steam at the $180 mark. The stock is now struggling with overhead pressure at the 30-day moving average, which came into place in mid-April, and carries a 12.9% year-to-date deficit.

The options pits have been pessimistic towards Airbnb stock. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ABNB's 10-day put/call volume ratio of 1.10 stands higher than 98% of readings from the last 12 months. This means puts have been picked up at a much quicker-than-usual pace. 

A sentiment shift seems to be in motion, however. So far, 32,000 calls and 21,000 puts have crossed the tape, which is 12 times the volume that is typically seen at this point. Most popular are the 5/6 160- and 165-strike calls, with positions being opened at the former.

 
 

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