In Airbnb'In its third-quarter financial results, the company showed mixed performance as it slightly beat top-line expectations with a reported $3.73 billion.
That's a little more than the $3.72 billion expected, but they still beat earnings estimates with earnings of just $2.13 per share, which is just below the $2.14 per share forecast. While revenue was encouraging, a 27.5% increase in sales and marketing expenses, totaling $514 million, impacted Airbnb profits.
Airbnb's Global Expansion Drives Strong Booking Growth in Q3
The company appeared to be a good option to boost bookings in those markets, according to Airbnb's strategy. According to the company, the average growth rate of nights booked in new markets was twice as high as in core markets, with the growth most evident in Asia-Pacific (19%) and Latin America (15%). The total number of nights and experiences has increased by 8% to 122.8 million. This is a clear indication that international demand is the main growth driver for Airbnb stock.
The company's gross value of reserves increased by 10% compared to last year to $20.1 billion, which is a clear indication of the strong demand for the product. Airbnb forecast revenue of $2.39 billion to $2.44 billion for the fourth quarter, a likely 8 to 10 percent increase over last year. Additionally, the average daily rate (ADR) increased 1% year over year, bringing the ADR to $164, and further growth should occur in the fourth quarter.
Airbnb stock maintained a steady implied take rate of around 18.6%, balancing revenue gains from cross-currency service fees with the cost of investments in customer service. Despite the guarantee of a 4% share addition in after-hours trading, the international growth investment company's motto may come true in the long term.
Airbnb Stock Chart Analysis
stocks/abnb”>ABNB/USD 15 minute chart
The chart seen above is a 15-minute chart of Airbnb Inc. (ABNB) stock. ABNB has recently shown a steady upward trend and recently broke the $148 resistance. Immediately after that, it rose slightly and reached a level of $147.39. It could be the new hurdle now if the price approaches this level again because despite breaking the resistance, accumulation occurred: $148.21 would be the new one. The price was at its best of the day, but then changed course due to profit taking or selling pressure.
The Relative Strength Index measures 67.10, approaching the overbought level of 70. This indicates that the stock is not overbought yet, but is close to reaching that condition. The RSI in the uptrend above 70 could bring buyers down and cause the stock to rest or even reverse for a while.
The support level, the cost, could be around $144, where there was a pause before a breakout. If the stock manages to hold above this level, it is likely to gain more interest from buyers, enabling bullish momentum. On the other hand, if it breaks below this support level, a further correction could follow, possibly as low as $140 or even $138.
In general, traders should consider the RSI and recent peaks when evaluating new entries, although the short-term slope remains positive.
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