Here’s why the Airbnb stock price soared and what to expect

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The Airbnb (NASDAQ: ABNB) stock price jumped by over 8% as optimism about summer travel continued. The stock jumped to a high of $172.90, which was higher than this year’s low of $131.40. Its market cap has jumped to over $110 billion, making it bigger than all publicly-traded hotels in the United States.

Travel momentum resumes

The main reason why the Airbnb stock price jumped was a statement made by Delta Airlines when the company published its quarterly results. The company announced that it had made a loss in the first quarter of this year as fuel costs jumped. Its loss increased to $734 million, which was higher than what analysts were expecting.

However, in a statement, the company’s CEO said that the company was seeing robust demand in the United States and other markets. He added the following during his statement to analysts:

“There are clear signs of pent-up demand for travel and experiences as consumers’ spending shifts from goods to services and experiences, travel restrictions lift and business travelers continue to return to the skies.”

Therefore, Airbnb stock is rising as investors price in more demand for its services as demand rises. Indeed, data compiled by Google shows that more people are searching for the Airbnb keyword. 

Also, data by SimilarWeb shows that the number of visitors to its website has been rising. Over 91 million people visited its website in March up from the previous 78.4 million. The same trend has continued in its mobile apps.

Therefore, investors believe that the ABNB stock price will continue doing well as the summer season nears. The next key catalyst will be the upcoming earnings call that will happen on May 5th. Analysts expect that the firm’s revenue rose to $1.45 billion.

Airbnb stock price forecast

The four-hour chart shows that the ABNB share price has been in a bullish trend in the past few days. The stock is slightly below the descending trendline that is shown in black. It is also slightly above the 25-day and 50-day moving averages.

Notably, the stock has formed a W pattern that is shown in orange. Therefore, there is a likelihood that the stock will have a bullish breakout in the coming days. If this happens, the next key resistance level to watch will be at $200. This view will be confirmed if the price moves above the descending trendline.

The post Here’s why the Airbnb stock price soared and what to expect appeared first on Invezz.

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