Investors have lost faith in Airbnb’s model, trader says with stock down nearly 40% from highs

Shares of Airbnb are down 36% from their February highs following the vacation rental company’s earnings announcement after Thursday’s closing bell. Airbnb’s revenue grew 5% in the first quarter, the company said in its second report since going public in December.

With the shares falling more than 3% to close at $135.75 on Thursday, there’s limited hope for a rebound, founder Todd Gordon told CNBC.

Well worth reading this analysis. The zinger:

“I think what’s happening with Airbnb, the swan dive in the price, is that it’s lost the imagination of Wall Street,” he said. “Wall Street has kind of lost faith in its model at this point and I think it’s going to be very tough going for the company going forward.”

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I have to LOL at this. An IPO is supposed to capture the ideal price and the IPO price was $68 after an range of $44-50. At $68 many possible buyers decided it was too rich already. Then it opened for trading at $146 and stayed north of there for months. Now it’s come back down but it’s still well above what was considered reasonable months ago. Anyway, what a trader says about a stock value isn’t related to the value as an investment or the viability of the company. If I had a dollar for all the negative trader comments I read about AMZN in the 90s and 00s …


Could also be reflecting an expectation that the expiring IPO lock up will flood in some shares and drop the price. Definitely some short action been going on.

Hard to say; I don’t try to time the market. Might as well go to Vegas in my opinion.

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As travel continues to increase, the price will go back up. Based upon my limited view of the number of new hosts in my area and the June & July bookings already made, Airbnb is in for a good financial year

Yeah, it was back up today. Stock pundits appear to have very mixed opinions, but none of them know this business.

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Hopefully it dips below a $100 then I will buy some.

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