Bear Market Blues? Buy Airbnb Stock Now
Today's bear market began in late 2021 when the Federal Reserve started hinting it would be raising interest rates to combat the threat of rising inflation. Rising interest rates are bad news for stocks because they decrease the present value of future cash flows. Additionally, when interest rates are higher, it increases the opportunity cost of capital.
Nevertheless, bear markets are bad news for nearly everyone, except those who bet on a falling market. Still, a bear market can be an excellent time to add beaten-down but quality stocks to your portfolio. One particularly outstanding stock to buy now is Airbnb (NASDAQ: ABNB). Here's why the worldwide travel facilitator deserves a spot in your portfolio.
The company is recovering exceptionally well after the outbreak of COVID-19 caused its revenue to fall by 30% in 2020. In the following year, Airbnb's sales surged by 77%. Airbnb acts as a middleman, connecting those looking to travel with those with a place they would like to rent. This asset-light business model gives Airbnb the flexibility to expand and contract along with the rise and fall in consumer demand.
Source Fool.com
