Co-Founder Dumped Nearly Half of His Airbnb, Follow to Sell or Wait for a Breakout?
Co-Founder Joseph Gebbia dumped nearly half his $Airbnb, Inc.(ABNB)$(Vacation rental leader)shares on November 14th for a total value of $62.7 million.
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Is is a bad news？let’s discuss to follow to sell or wait for $Airbnb, Inc.(ABNB)$ a Breakout?
From a technical analysis point of view: $Airbnb, Inc.(ABNB)$ looks ready to take the 50 day?
If it can close above above $123. Stand on the 50 DMA, then $ 131 pivot. This is a time to get in before it "breaks out".
$Airbnb, Inc.(ABNB)$ was one of the top 10 winners for last week：
$Intel(INTC)$ +12.7%
$Tesla Motors(TSLA)$ +9.1%
$Bank of America(BAC)$ +8.3%
$Citigroup(C)$ +7.8%
$Airbnb, Inc.(ABNB)$ +7.6%
$Walt Disney(DIS)$ +6.6%
$Boeing(BA)$ +5.8%
$Home Depot(HD)$ +5.4%
Some fundamentals highlights:
$Airbnb, Inc.(ABNB)$ shares have struggled in the last three years, but the company’s financials remain solid.
3 weeks ago, it announced beats on revenue but offers weaker-than-expected guidance.
Regarding its business, rental homes, as opposed to traditional hotels, provide a one-of-a-kind personalized experience that attracts travelers.
Airbnb also has an advantage in that it allows travelers to rent out homes in offbeat locations where most traditional hotels would not be able to operate.
This is probably why the company’s revenue jumped from $3.6 billion in 2018 to $9.6 billion for the trailing 12 months.
Airbnb ended the quarter with a hefty $11.0 billion in cash, cash equivalents, and short-term investments. It’s not quite often that a growing company maintains a robust balance sheet while generating substantial profits.
However, airbnb also have challenges on raising cost and regulatory concerns as New York City’s ban on short-term rentals in an effort to alleviate the housing shortage crisis.
Overall, ABNB stock has a Moderate Buy consensus rating. Out of the 30 analysts covering the stock over the past three months, 13 rate it a Buy, 14 rate it a Hold, and three recommend a Sell.
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if Airbnb doesn’t make some big changes to its model, not sure how this doesn’t crater the company and stock. More and more major cities are putting hard regulation on airbnbs - they need to shift focus from travel to housing if they are going to survive.
The current price exhibits promising upward signals according to my algorithmic system, meeting various criteria. These include rising trading volume, an upward trend indicated by prices above EMA20 and EMA50, and the closing price surpassing VWAP. As a result, the present conditions suggest a potential upward trend.
Several Canadian cities seem to be thinking about regulating ABNB too due to the housing crisis. I would follow to sell
So in summary, Airbnb may not be as hot a growth pick as it used to be.
So why did Co-founder Joseph Gebbia sell half his shares of this company?
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Great ariticle, would you like to share it?