Airbnb Teams Up with Etsy for “Art of Hosting” Collab

Can profitability help ABNB bounce back?

facebook twitter linkedin

Airbnb Inc (NASDAQ:ABNB) recently announced that it was teaming up with Etsy (ETSY) to introduce a curated selection of crafted and guest-favorite home items from Etsy sellers in a project called the “Art of Hosting.” The selection, which features homemade items, aims to make it easy and affordable for new and existing Airbnb Hosts to create a guest-friendly listing with unique touches.

ABNB was last seen down 1.7% at $139.65, as it makes its way toward its fifth-consecutive daily loss. The stock has managed to find footing near the $138 level, however, which is helping to keep some distance between its current price and its May 19 annual low of $129.71. Nevertheless, the shares are down 15.7% year-to-date, and suffer a 30% 12-month deficit. 

This recent slide has attracted options bears. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ABNB sports a 10-day put/call volume ratio of 1.05, which stands higher than all but 1% of annual readings. This implies long puts have rarely been more popular in the past year. 

Echoing this, ABNB's Schaeffer's put/call open interest ratio (SOIR) of 1.24 sits in the 91st percentile of its annual range. In other words, short-term options traders are targeting Airbnb puts with an unprecedented frenzy. 

Price action aside, Airbnb stock continues to have strong long-term growth potential. Although the firm suffered a 30% decline in revenues for fiscal 2020 as a result of the pandemic, its revenues are still up 46% since fiscal 2018. The vacation rental marketplace is also estimated to grow revenues another 23.7% in 2022. In addition, ABNB is expected to see a shift into profitability in 2022, with estimates placing its earnings per share (EPS) at $0.96.

Moreover, Airbnb also holds a strong balance sheet with $7.92 billion in cash and $2.43 billion in total debt, offering a great deal of security. Nonetheless, Airbnb stock could very easily continue to see significant weakness in the short-term due to its high valuation, with the stock trading at very high price-sales ratio of 21.22. However, ABNB does have a very attractive long-term outlook from a fundamental point of view.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners