1 Green Flag and 1 Red Flag for Airbnb
Investors are conflicted about Airbnb (NASDAQ: ABNB) stock right now. Shares have declined sharply in 2022, even though the home and room rental platform is seeing strong growth and generating impressive profits.
Wall Street is more worried about the effect that an economic pullback might have on its service, which relies on discretionary spending for many of its travel bookings. Let's take a closer look at how that exposure to the travel industry might hurt the business over the next few quarters, along with one big reason to still like the stock.
The major concern about Airbnb's business is the possibility of a recession. Such a slump would create intense pressure on travel spending, which still accounts for most of the company's business.
Source Fool.com
