Amid a Miss on Bookings, Should Airbnb Investors Book More Stock Purchases?
Airbnb (NASDAQ: ABNB) stock plunged 11% last Wednesday following the release of its Q1 earnings report. While its revenue and bookings grew at double-digit rates, investors seemed unsatisfied with the growth forecast for the second quarter and dumped the stock.
Nonetheless, Airbnb made financial improvements and has shown its ability to foster new lines of business within the short-term rental space. Hence, the question for investors is whether the pullback in the internet and direct marketing retail stock is an opportunity to add positions or a warning to stay away.
On the surface, Airbnb seemed to have a solid report. Its revenue of $1.8 billion increased by 20%. New customers are booking Airbnb vacation rentals, and existing guests are staying longer in such properties. Those trends helped its revenue to grow.
Source Fool.com
