Airbnb Stock: 2 Reasons to Buy the Dip
Airbnb (NASDAQ: ABNB) reported another solid round of quarterly earnings results recently, but the market was looking for a stronger outlook for growth in this challenging economic environment. The stock dropped 17% following its first-quarter earnings report on May 9.
The main problem is that travelers are becoming more price sensitive. This is evident in Airbnb's second-quarter revenue guidance, which implies year-over-year growth between 12% and 16%, following growth of 20% in the first quarter. Growth is slowing faster than Wall Street analysts expected, and that's why the stock is down.
However, the post-earnings volatility shouldn't scare long-term investors. There are two catalysts that justify buying this travel stock on the dip.
Source Fool.com
