Downward trends in Stock Price of AirBNB influenced by Covid-19 and Restrictive Measures.

Airbnb, Inc. operates a platform for stays and experiences to guests worldwide. The company's marketplace model connects hosts and guests online or through mobile devices to book spaces and experiences. Threfore, the firm is almost solely reliant on consumer demand and is affected heavily by seasonal and environmental factors and changes. Since Covid-19 went on a rampage throuout the world, firms such as AirBNB that primarly provide hospitality services have been negatively impacted. Over the year, measures such as mandatory lockdowns and social distancing has driven the demand for the firm's services downwards and based on most indicators, this downward trend will presist until society in general move on from the restrictive measures that have been put into place currently.  Q4 results showed a 22% loss in share price and this trend is continuing.The nature of the firm's services make it difficult for it to thrive in the current conditions and thus, my prediction/analysis for the firm is that it will continue on a slow downward trend, and would only be able to recover its losses once consumers have the freedom of mobility. There have been recent developments which gove confidence that society will return to some sence of normalcy by 2022. If that happens, then I predict AirBNB will regain its pre-Covid position, and due to a positive shock due to increased demand, I predict the stock will grow explosively in the quarter that follows the opening up of the economy. 

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Downward trends in Stock Price of AirBNB influenced by Covid-19 and Restrictive Measures.

bearish

Airbnb, Inc. operates a platform for stays and experiences to guests worldwide. The company's marketplace model connects hosts and guests online or through mobile devices to book spaces and experiences. Ttarget='_blank' hrefore, the firm is almost solely reliant on consumer demand and is affected heavily by seasonal and environmental factors and changes. Since Covid-19 went on a rampage throuout the world, firms such as AirBNB that primarly provide hospitality services have been negatively impacted. Over the year, measures such as mandatory lockdowns and social distancing has driven the demand for the firm's services downwards and based on most indicators, this downward trend will presist until society in general move on from the restrictive measures that have been put into place currently.  Q4 results showed a 22% loss in share price and this trend is continuing.The nature of the firm's services make it difficult for it to thrive in the current conditions and thus, my prediction/analysis for the firm is that it will continue on a slow downward trend, and would only be able to recover its losses once consumers have the freedom of mobility. There have been recent developments which gove confidence that society will return to some sence of normalcy by 2022. If that happens, then I predict AirBNB will regain its pre-Covid position, and due to a positive shock due to increased demand, I predict the stock will grow explosively in the quarter that follows the opening up of the economy. 

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read-time
1 min

146.10

Target Price

6/ 10

Confidence

1-3 Years

Timeframe
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