Stocks were flat to start the week as several potential market moving factors are expected to take shape in the coming days. The Federal Reserve is in focus as investors await results from their June meeting which are due out Wednesday. Investors will be looking for clues as to when the Fed will start to taper back the bond-buying program that was initiated to provide liquidity during the pandemic.
Enthusiasm was through the roof when today’s featured stock made its debut. But since then the share price has settled, offering up a more attractive entry for investors who are looking to get in before the stock makes its next run.
Jeff Bezos Just Poured $10 Billion Into This…
Not many people know this story… But in 1998, Bezos invested $250,000 of his own money in Google, when the company was just getting started out of a garage in California. When Google went public in 2004, that $250,000 investment translated into 3.3 million shares of Google stock. Nobody knows if Bezos has sold any shares. If he hasn’t, today they’re worth more than $5.6 billion.Jeff Bezos is betting big on a new trend. This time he’s planning to invest $10 billion of his own money in this exciting new trend. That’s 40,000 times more money than what he invested in Google. That’s how big he thinks this could be. [Full Story…]
Even as other tourism companies battled to survive the pandemic, Airbnb (ABNB) made a huge market debut last year. In February, Airbnb stock topped $220, more than double its listing price. However, Airbnb‘s stock price has lost more than 30% since then. Airbnb, like many other high-risk, high-reward stocks, may have lost appeal with value investors. But it has also created a more attractive entry for the stock’s many fans.
At the pandemic’s peak, Airbnb had to gather emergency funds and cut a fourth of its personnel. These efforts were pivotal in helping Airbnb recover from the “most harrowing crisis of our lifetime,” according to CEO Brian Chesky. Airbnb’s income was $3.4 billion at the end of the year, down 30% from the previous year. That’s impressive, given that the company had expected revenue to drop by more than 50% in 2020.
Revenue increased 5% year over year to $887 million in the first quarter of 2021, easily above Wall Street projections. Airbnb attributed this to a 35% increase in overall average daily rates, as most of its bookings were in the United States (which tends to have higher daily rates). There were also fewer cancellations this quarter than the year before.
Chesky appears to be optimistic about the company’s future prospects. In a recent interview he identified a crucial travel pattern that could be long-term. According to data from Airbnb’s most recent fiscal quarter, enthusiastic visitors are already taking short “staycations” fewer than 50 miles from home.
Furthermore, a quarter of these stays were for 28 days or more. This, according to Chesky, demonstrates customers’ rising interest in lengthier vacation stays. When you combine all of this with the fact that Airbnb’s recent quarter revenue exceeded analysts’ expectations, things could be looking bright for the company.
Despite being a household name in the global travel industry, it’s captured less than 1% of its total addressable market. That leaves a lot of room for growth in the long run. Investors who want to play on the expanding popularity of consumer travel may be interested in ABNB shares.
Where to invest $1,000 right now...
Before you consider buying ABNB, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not ABNB.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Banyan Hill Publishing:
Just $2 a Share Today — The No. 1 Investment of the 2020s
New technology’s user base growing at 5X the speed of the internet in the 1990s. Could dwarf dot-com boom. [Click here to get details on $2 stock now.]