Airbnb, Inc (NASDAQ:ABNB) releases 2021 full-year results today February 15, 2022. This is the second annual release after the company’s IPO on December 9, 2020, and the first full-year results for ABNB as a publicly-traded company. There is a lot of interest in the performance of the company and how the results are likely to impact its market valuation.
ABNB is a large growth stock and a narrow moat company. The previous year’s results experienced significant downward pressure due to the pandemic. In 2021, the operating environment improved significantly due to vaccination of the masses against COVID-19, lifting of travel restrictions, and work flexibility.
ABNB recorded sustained demand, with growth in the US, Europe, and other markets globally. Today’s results are expected to demonstrate a rebound of the revenues above the pre-listing levels of $4.8 billion.
ABNB rallies below key resistance
Source – TradingView
ABNB shares have rallied since the press release announcing today’s date for the release of results, rising from $140 at the beginning of the month to today’s premarket price of $174. MA 10 tested the very important MA 50 indicating a potential upward trend that will be affirmed if MA 10 crosses above MA 20. Analyst valuations converge at $190.
However, it is unlikely that the price will correct to the fair value level. Instead, the share price is likely to face resistance at $180. The only way that the share price could rise above $180 is if the company reports revenues significantly above $5.35 billion estimates.
Airbnb has a fair value of $190 based on analysts’ consensus. While demand was sustained in 2021 and revenues show an uptick, it may take some time before the share price rises to the fair value level. ABNB is a hold at the current price of $174.
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