[ad_1]
Airbnb received a rare double upgrade to a buy note from Gordon Haskett this week. The company sees improving trends, especially in Europe, as a boon to the vacation rental fleet.
But Airbnb has languished this year compared to fast-growing challenger Expedia, which owns competitor VRBO. Airbnb stock fell 2% in 2021, while Expedia is up 22%.
Airbnb shares may have been the victim of a rotation into high-priced growth stocks, according to Gina Sanchez, chief market strategist at Lido Advisors and CEO of Chantico Global.
“It just faced the mother of all stress tests, and it offers growth, so it doesn’t necessarily have value,” Sanchez told CNBC’s “Trading Nation” Tuesday. “Trade for the first half of this year was growth at a reasonable price. That’s what Expedia promised.”
Now Sanchez sees a return to betting on high-growth stocks like Airbnb, where higher valuations are tolerated for the prospect of future earnings.
“Commerce for the second half of the year is growth, and that’s really what Airbnb is preparing for. And so if you look forward rather than back, you’re looking for opportunities to deliver meaningful growth, and that’s really where to look at Airbnb, ”Sanchez said.
Airbnb is not expected to post annual profit until 2022. Expedia, by comparison, is expected to rebound in the dark this year after last year’s sharp loss.
Todd Gordon, founder of TradingAnalysis.com, can be found on the other side of the trade. It supports Expedia.
“I think Airbnb’s technical position is in trouble, trying to hold that IPO price of $ 145 since December, while Expedia is doing well on the upside. Expedia, if it can get past $ 160, it looks really, really good, ”Gordon said. during the same interview.
Airbnb closed at $ 143.41 per share on Tuesday and Expedia closed at $ 162.02.
Warning
[ad_2]
Source link