To The Moon

Airbnb's in downtrend?

Airbnb stock slipped in Tuesday’s extended session after Morgan Stanley moved to a Sell-equivalent rating.

A team of analysts led by Brian Nowak called out,

Decelerating supply growth” reflected in channel checks, an issue that comes at an inopportune time given inflationary impacts on consumers. He added that the bank’s research shows “occupancy headwinds and lower room night demand.

Its stock price down 35% this year despite generating record revenues. The downtrend is caused in part by investors' general concern about rising interest rates, which can have an impact on growth companies by weighing on profitability.

It is heading into 2023 with several challenges threatening to negatively impact its bookings.

Days ago, $Airbnb, Inc.(ABNB)$ launched a new apartment rental platform in more than 25 markets across the U.S., including Houston, Phoenix, and Jacksonville. Airbnb-friendly apartments are aimed at unlocking the economic benefits of hosting to help renters cover the rising cost of living.

Facebook Plunge…Again?

$Meta Platforms, Inc.(META)$ shares fell almost 7% Tuesday as the Facebook parent got swept up in broad market losses brought on by concerns about the economy ahead of next week's Federal Reserve meeting.

Two Possible reasons. 

First, investors remained concerned about the economy and steps the Fed might take to combat inflation. Fears have grown about the potential for interest rates to rise in an effort to cool down the economy.

Second, Facebook also threatened to pull news content from its platform if the U.S. Congress passes a bill aimed at evening out the playing field between news organizations that post their content on social-media platforms. The bill, called the Journalism Competition and Preservation Act, is favored by smaller publishers on the grounds that it would help them get a bigger piece of online advertising dollars.

Blizzard Activision & Microsoft Acquisition Updates

$Microsoft(MSFT)$ and $Nintendo Co., Ltd.(NTDOY)$ have come to a deal that will bring $Activision Blizzard(ATVI)$ best-selling videogame franchise Call of Duty to Nintendo's gaming platforms for 10 years - part of a recent push from Microsoft to reassure regulators who are lining up to oppose Microsoft's $69B acquisition of Activision.

The other day, to fend off objections, Microsoft offered Sony a 10-year guarantee for same-day Call of Duty releases on PlayStation.

Microsoft is committed to helping bring more games to more people - however they choose to play.