Airbnb received a rare double upgrade to a buy rating from Gordon Haskett this week. The company sees rising trends, especially in Europe, as a blessing for the holiday rental portfolio.
But Airbnb is languishing this year compared to the fast-growing challenger Expediawho owns competitor VRBO. Airbnb stock is down 2% in 2021 while Expedia is up 22%.
According to Gina Sanchez, chief market strategist at Lido Advisors and CEO of Chantico Global, Airbnb’s shares may have been the victim of a rotation away from high-priced growth stocks.
“It’s just faced the mother of all stress tests and offers growth so it’s not necessarily valuable,” Sanchez told CNBC.Trading nation“on Tuesday.” Trading for the first half of this year was growth at a reasonable price. Expedia promised that. “
Now Sanchez sees a return to betting on high-growth stocks like Airbnb, which will tolerate higher valuations for the prospect of future profits.
“Commerce in the second half of the year is growth, and Airbnb is really preparing for that. So if you’re looking forward rather than backward, you’re looking for opportunities for significant growth, and that’s really where Airbnb is to look, “Sanchez said.
Airbnb is not expected to post full year earnings before 2022. Expedia, by comparison, is projected to be back in the black this year after last year’s heavy loss.
Todd Gordon, Founder of TradingAnalysis.com, sits on the other side of trading. He supports Expedia.
“I believe Airbnb’s technical stance is struggling to hold its December IPO price of $ 145 while Expedia is climbing nicely. Expedia, if it can break above $ 160, really sees this really good looking, “said Gordon Gordon in the same interview.
Airbnb closed Tuesday at $ 143.41 per share and Expedia closed at $ 162.02.