Post-Earnings Bear Notes Weigh on Airbnb Stock

The lodging marketplace reported a second-quarter revenue miss

Digital Content Manager
Aug 3, 2022 at 10:39 AM
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Airbnb Inc (NASDAQ:ABNB) reported better-than-expected second-quarter profits of 56 cents per share last night. However, the online marketplace for lodging also posted a revenue miss, with flight disruptions in the U.S. posing a macro challenge. Also weighing on the shares is a fiscal third-quarter outlook that was on par with current growth, with bookings slowing down in May and June, which poured cold water on investors that has expected a post-pandemic summer travel boom. At last check, ABNB is down 2.4% at $113.54.

The brokerage bunch has dished out at least 13 price-target cuts in response to the results, with one coming from Deutsche Bank to $110 from $120. Analysts are already pessimistic towards ABNB, with 16 of the 24 in coverage deeming it a "hold" or worse.

Shorts have been piling on Airbnb stock as well, with short interest up 48.1% over the last two reporting periods. The 22.43 million shares sold short now make up 6% of the equity's available float.

There's put-bias amongst short-term options traders, too This is per ABNB's Schaeffer's put/call open interest ratio (SOIR) of 1.42, which ranks higher than all readings from the last year. 

Options traders are blasting already the stock today. So far, 30,000 calls and 17,000 puts have crossed the tape, which is seven times what is normally seen at this point. Most popular is the 8/5 120-strike call, followed by the 123-strike call in the same series.

Airbnb stock had been bouncing off a June 30, all-time low of $86.71 prior to today's drop, but this rally lost steam before it could reach the $120 level and topple the 40-day moving average. So far this year, Airbnb stock has already dropped more than 32%.



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