1 Green Flag for Airbnb, and 1 Red Flag
Investors have mixed feelings about Airbnb's (NASDAQ: ABNB) stock in 2022. On the one hand, the company benefits from consumers unleashing pent-up travel demand after two years of delayed vacations.
On the other, fears of a recession brought on by rising inflation could dampen travel spending after the burst of pent-up demand exhausts itself. Unfortunately, the pessimists are winning out as Airbnb's stock is down 39% year to date. Let's look at the green and red flags in more detail.
The coronavirus pandemic forced people to delay traveling for nearly two years. Even if people felt comfortable getting on planes, government restrictions made it inconvenient. As a result, Airbnb's revenue fell by 30% in 2020. Overall, spending on hotels and resorts fell to $610 billion in 2020. That was down from $1.5 trillion in 2019.
Source Fool.com
