Is Airbnb Still a Buy at $200? By StockNews

Accommodation-related service provider Airbnb’s (ABNB) shares have soared in price over the past few months and peaked at $203.29 recently, thanks to easing travel restrictions. But can the stock continue to rally even though the company’s costs and expenses have risen over the last quarter? Let’s find out.
Airbnb, Inc. (ABNB), which is headquartered in San Francisco, attracted huge investor interest when it made its stock market debut last December. The company operates a platform that facilitates temporary accommodation for guests worldwide. Its shares have climbed in price over the past few weeks and peaked at $203.29 on November 5, thanks to its stellar third-quarter earnings. The stock has gained 17.9% over the past month and 18% over the past week to close yesterday’s trading session at $200.32.

The U.S. government’s elimination of its travel ban on more than 33 countries has been a catalyst for ABNB’s business revival. Furthermore, investors’ sentiment about traveling improved with the November 5 announcement that Pfizer Inc.’s (NYSE:) COVID-19 pill reduces the risk of being hospitalized or dying from the virus by 89%.

However, ABNB’s cost of revenue in the third quarter (ended September 30, 2021) increased 37% year-over-year to $312 million due to an increase in merchant fees driven by higher Nights and Experiences Booked. In addition, a company director, Jeffrey Jordan, sold 25,000 shares in September 2021. So, ABNB’s near-term prospects look uncertain.

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