Airbnb, Inc. (ABNB) stock got walloped on Wednesday after telling investors that fourth quarter revenue would come in as expected, between $1.8 and $1.88 billion, which is in line with the current forecast of $1.85 billion. (1) ABNB lost more than 13% on the day despite delivering earnings and revenue that topped Wall Street’s predictions.
The Federal Reserve raising rates 75 basis points and basically saying more is to come, turning the markets immediately south to close the day, probably didn’t help the travel services company’s cause.
Investors looking to go bargain hunting on Airbnb might be best served exercising some patience. Wednesday’s earnings freefall busted an emerging uptrend and has put the stock in a dangerous place. The stock set its 52-week low of $86.71 on June 30, 2022. It’s traded up since then.
The 52-week intraday support level comes with an extra layer of importance. The stock has never traded below $86.71 since its Initial Public Offering (IPO). Shares of ABNB were priced at $68 for its December 10, 2020, IPO and closed at $144.71 after the first day of trading.
If ABNB closes at a new 52-week low, there is nothing but empty technical space below, all the way down to the IPO price of $68. It’s been our experience that selling pressure can accelerate when recent IPOs set all-time trading lows. Bottom fishing investors might be wise to let Airbnb, Inc. (ABNB) play out a little longer before jumping in.
Rich Meyers
Investing Trends
1 – https://www.fool.com/investing/2022/11/02/wall-street-is-giving-up-on-airbnb-is-the-growth-s/
