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Jul 30, 2021
[3 min Read]
- On July 14 Delta airlines report their earnings with a beat in expectations.
Delta CEO said: "We're into a full recovery of our business, led by the U.S. consumer,"
- On July 22 AAL Beat on EPS but misses on revenue
AAL CEO's said "incredible" post-COVID recovery and that its business is "well on our way to getting back to normal."
- July 29 Hilton beat on EPS missed in revenue
HLT said: Hilton expects continued strength in leisure demand and further upticks in business travel to drive continued resurgence in the back half of the year. The hotel operator sees full year net unit growth of between 5.0% and 5.5%.
- May 13 EPS of -$1.95, Revenue of $886.9M (+5.4% Y/Y)
Airbnb attracted over $10B of bookings in Q1 2021, an increase of over 50% from the same prior year period as travel returns.
Tech company based in silicon valley that offers the home of people who want to rent it for small periods of times, to people who want to travel or work.
The houses they offer are inspected and well photographed so guests know what they are renting.
They profit from a fee of ~10% from the guest.
Currently ABNB has 4Million hosts from all around the globe.
Since covid ABNB has expanded their business to other areas like experiences (cooking, pets, sailing, surf, food/wine tasting).
Usually their hosts offer houses that are competitive to hotels but may lack hotel normal services (except cleaning)
Airbnb offer insurance up to 1Million dollars in case guests damage the property, recent case from a party in Dallas, which led to airbnb ban parties and guests who might be into parties.
Airbnb model protects them from house expenses, in a covid world they have no expenses with unrented houses and rooms unlike hotels.
As you can see trusting your house to strangers might not be relaxing, thus Airbnb needs to offer a safe ecosystem of people who can be trusted.
Hosts need to be sure their property will be intact and guests want to get what they paid for.
For that Airbnb has a method of rating, both host and guest will review one another. In this process they can filter out the worst guests and hosts, and keep the good ones.
Creating this environment is important for hosts, as they can know, how the guests they are receiving, have behaved in previous houses.
Leads to less uncertainty and more focus on making their property more appealing to well behaved guests.
Since February ABNB defined a clear resistance line that is merging with resistance at 130$.
The stock is currently testing the resistance at 143$ which might be broke after a strong earnings.
Weekly chart MACD might indicate a finale to the bear trend, RSI is at 40
The chart indicates an interest rate for the past 5 years.
As google indicates in the ? icon:
Numbers represent search interest relative to the highest point on the chart for the given region and time. A value of 100 is the peak popularity for the term. A value of 50 means that the term is half as popular. A score of 0 means that there was not enough data for this term.
It's clear that interest over airbnb is rising once again.
82 stocks at 143$ and will add more if earnings show success
TLDR: Airbnb is poised to make a comeback post-covid world, earnings might be a huge success.