Airbnb (NASDAQ:ABNB) has been turning heads since its blowout initial public offering, and once again, ABNB stock is making big moves. Today, shares are up more than 7% ahead of the fourth-quarter earnings report. So what do you need to know? And why are Q4 earnings such a positive catalyst?
Perhaps the real question is, how is ABNB stock so successful as Covid-19 enters its second year? That question surprised many investors as Airbnb went ahead with its IPO. It also surprised investors as Airbnb reported promising data, including anecdotes of consumers booking trips to get out of their city apartments and spend some time working from tiny cabins or treehouses or tents.
Now, Airbnb is set to report its fourth-quarter earnings, and analysts are paying close attention. What the short-term rentals and experience company shares will give us quite a bit of insight into the hot company. It could also give us insight into what is ahead, especially with reopening plays trending. Just today, we have seen airline stocks and cruise stocks rally. The hope is that with new treatments, like a vaccine from Johnson & Johnson (NYSE:JNJ), a return to normal could be around the corner. Then, Airbnb could thrive not just from work-from-home trips, but from massive summer vacations.
So what has ABNB stock on the move today?
Ahead of the earnings report, analysts are bullish on Airbnb. One of those bulls is Rob Sanderson of Loop Capital. He recently raised his rating to a “buy” and set a price target of $240. He is also projecting revenue of $937 million, which compares to a consensus estimate of just $747 million.
What to Know About ABNB Stock?
So what do you need to know about Airbnb and ABNB stock right now? And what has Sanderson so bullish? Well, it seems that the broader reopening rally is behind his call. As he wrote, other companies in the travel and experience space have seen similar gains. Uber (NYSE:UBER) is turning things around with its core ride-hailing business, and Expedia (NASDAQ:EXPE) reported sequential growth for its Vrbo unit.
Add in the fact that Covid-19 statistics are improving, a $1.9 trillion stimulus package is set to pass in the House and pending vaccine approval for JNJ, and things are looking up. Earnings events can bring a lot of volatility, so be cautious with ABNB stock. However, if you are bullish on Airbnb in the long term, this is a stock you want to watch.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.