- Inspirato (NASDAQ:ISPO) stock completed its post-debut arc, and is now trading at an attractive price.
- Impressive fiscal stats, including growing revenues, underscore the bullish thesis.
- Investors should consider a starter position if they have a strong tolerance for risk.
Inspirato stock just recently became available for trading on the Nasdaq exchange.
Specifically, the stock debuted on February 14, 2022, not long after Inspirato completed its business combination with a special-purpose acquisition company (SPAC) called Thayer Ventures Acquisition Corporation.
Chris Hemmeter, former Co-CEO of Thayer Ventures Acquisition Corporation, described Inspirato as “disruptive leader in the luxury travel space.” Hemmeter emphasized Inspirato’s subscription business model and the company’s “growing supply-side momentum.”
As we’ll see, the data supports Hemmeter’s enthusiasm for Inspirato. At the same time, an investment in the shares might not be appropriate for everyone, as there is risk involved.
What’s Happening With ISPO Stock?
There was a lot of love for ISPO stock on Valentine’s Day and the next few trading days, as the share price zoomed from $11 to $108.
Previously, when the stock traded under the ticker symbol TVAC, it clung to the $10 level for a long time. That’s not unusual for SPAC stocks, but the post-merger-announcement rocket ride to $108 was definitely noteworthy.
Chasing after parabolic price moves can be bad for your financial health. Unfortunately, some traders had to learn this harsh lesson as ISPO stock sank below $10 in mid-March 2022.
Clearly, this stock is volatile and therefore, only a small position size is appropriate. Moreover, you don’t have to take a position at all if you’re highly averse to risk.
That having been said, we can also build a bullish case in favor of ISPO stock now that the share price is reasonable again. Don’t expect a return to $108 anytime soon, but the retracement to $10 appears to be overdone and you may be able to take advantage of it.
All Amenities Included
“An Inspirato vacation is a carefully crafted experience. Imagine all the details taken care of for you—the fridge is stocked, the beds are made, the kitchen cleaned up after you, the day’s itinerary planned.” That’s how the company describes its luxury vacation subscription-service customer experience.
Obviously, the target market consists of affluent travelers.
By letting Inspriato do the booking and pre-trip planning for them, these travelers can enjoy experiences at luxury vacation homes as well as five-star hotels and resorts.
If you’re worried that the Covid-19 pandemic may have crimped the company’s revenues, relax. Inspirato reported record 2021 revenue of $235 million, exceeding guidance by $13 million and marking a year-over-year increase of 42%.
Plus, the company had record cash flow from operations in 2021, totaling $29 million and representing a year-over-year 148% increase.
Furthermore, the future looks bright for this luxury travel experience provider. For 2022, Inspirato guided for an ambitious revenue range of $350 million to $360 million.
What You Can Do Now
Are you worried about Covid-19’s impact on Inspirato? There’s no need to be concerned, as the company is preparing for a full year of robust revenues.
Don’t misunderstand — there’s risk involved in holding ISPO stock because it’s definitely volatile. Therefore, it’s important to exercise caution when sizing your position in the stock.
Still, given Inspirato’s unique service offerings and strong fiscal data, a moderate starter position in the shares could be justified.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.