Airbnb (NASDAQ:ABNB) stock is rising higher on Tuesday as investors react to news of the home rental company joining the S&P 500.
According to an update sent out on Friday, shares of ABNB stock will join the S&P 500 on Sept. 18. Joining the index at the same time is Blackstone (NYSE:BX). This will have these two companies replacing Lincoln National (NYSE:LNC) and Newell Brands (NASDAQ:NWL).
Investors are celebrating news of ABNB stock joining the S&P 500 and it also has those shares seeing incredibly heavy trading on Tuesday. As of this writing, more than 11 million shares of the company’s stock have changed hands. That’s already more than double the company’s daily average trading volume of about 5.1 million units.
A Bull Case For ABNB Stock
Investors will also remember that Airbnb also released a strong earnings report last month. That saw the company beat out earnings estimates while also increasing its outlook for the rest of the year, Seeking Alpha notes.
This inspired the following commentary from Tigress Research analyst Ivan Feinseth in a note to clients obtained by Barron’s.
“ABNB continues to benefit from strong travel demand and the ongoing consumer shift to alternative, better-value accommodations. ABNB’s ongoing investments in marketing initiatives, innovation, and introduction of new features combined with international expansion will continue to drive accelerating Business Performance trends.”
ABNB stock is up 7.6% as of Tuesday morning. The stock is also up 68.1% year-to-date.
Investors can check out even more of the most recent stock market news by sticking around!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
