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Airbnb Is Rising on the Hope of a Summer Vacation Breakout

April 20, 2022

Earnings season is upon us, and it’s time for companies to impress investors. Having suffered a lot over the past few months due to Russia’s invasion of Ukraine and the tech selloff, U.S. stocks are under pressure again due to the inflation. However, Airbnb (NASDAQ:ABNB) is hoping to make the most of travel this year. ABNB stock is rising on the hope of a breakout in the upcoming summer vacation months.

Citigroup analyst Ronald Josey has a buy rating for ABNB stock with a price target of $200. The analyst believes the company is a leader in the travel industry and will continue to grow and innovate with new products and services.

Further, BTIG analyst Jake Fuller has a neutral rating for the stock, but believes the post-Omicron rebound in travel bookings will help ABNB stock get on track to meet its room night guidance. We might see a rise in booking numbers when the company reports results on May 3. Analysts expect the company to report revenue of $1.45 billion. 

In the previous quarter, Airbnb reported revenue of $1.5 billion as well as 73.4 million nights and experiences booked. The company has projected revenue between $1.41 billion and $1.48 billion for the first quarter of 2022. 

After more than two years of Covid-19, this is the summer of revenge travel. Airbnb is set to gain as these travelers look for safety, comfort and privacy. People are no longer going to popular, crowded destinations but are looking for peaceful, comfortable stays where they do not have to worry about masking or social distancing.

This is where ABNB stock is set to gain this quarter. It could benefit from the normalization effect and could report solid numbers this year. 

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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