Airbnb Q3 Earnings Preview

ABOUT AIRBNB

Airbnb was created in 2007 and has since had a transformational impact on the tourism industry, operating an online marketplace for short-term lodging. It has active listings in more than 100,000 cities (as Sep 20. 2021) across 220+ countries and regions and more than 4 million hosts. [1]

It went public amidst the pandemic lockdowns, as its IPO took place on December 10th 2020, with an underwhelming performance during the first days of trading.

Q3 EARNINGS

Back in September, it had released impressive financial results for the second quarter of the year and had provided upbeat forward guidance, expecting "Q3 2021 revenue to be our strongest quarterly revenue on record and to deliver the highest Adjusted EBITDA dollars and margin ever", despite Delta variant warning. [2]

This is on the back of positive developments around the travel industry, as Covid restrictions are lifted and more and more people travel again.

The Q3 results are released on Thursday November 4 after US markets close, its fourth such report as a publicly traded company. Investors will want to see how this trend will reflect on Nights and Experiences Booked and will be looking for any potential updates around the "100+ innovations and upgrades", introduced earlier in the year.

Airbnb is forecasted to announce Revenue of $2.06 billion against $1.335 billion in the previous quarter and Earnings of $0.7224/share vs a Loss of $0.11 in Q2.

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Revenue and EPS forecast were extracted from investing.com earnings calendar on November 4

STOCK MOVEMENT

ABNB.us gained almost 10% during the third quarter of 2021 and the last quarter of the year is also off to a good start. The stock has covered around half of the drop from February's all-time highs to May's 2021 lows, but has not yet managed to leave $175 behind it.

The upward momentum can push the stock to fresh highs beyond 177.11, but may require positive news from the earnings, to blast through 180.00.

ABNB.us however, has failed multiple times above 175.00 and heightened expectations by the firms upbeat guidance, create risk of disappointment. Any breach of the aforementioned level may cause fresh selling pressure that would threaten the ascending trendline from its summer lows. This has the ability to fend-off such attacks, but a breach would expose the stock to the EMA100 and last month's low at around 160.50.


Past Performance: Past Performance is not an indicator of future results.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 04 Nov 2021 https://news.airbnb.com/about-us/

2

Retrieved 04 Nov 2021 https://s26.q4cdn.com/656283129/files/doc_financials/2021/q2/Airbnb_Q2-2021-Shareholder-Letter_Final.pdf

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