Airbnb has been a stock I have been monitoring very closely over the last few months. I traded it earlier in the year, and recently blogged that it was a stock I was watching very closely. There are a few things that really interest me about this stock. First, I really love the story. This is a company that has totally revolutionized how people vacation. It's easy for the average person to see how Airbnb is the dominant player in this industry in 2021, and it is showing up in its' fundamentals. With strong sales growth over the last year, ABNB is making up for all the lost revenue it experienced in 2020 due to COVID-19.
While looking at its' weekly chart, there are a few things that catch my eye. First, after finding support at the $130 level, ABNB has continued to hold above its' 10-week line, which is an excellent sign of institutional support. In addition, there was some heavy skyscraper accumulation coming into the stock in September. This was followed by a calm, low volume pullback in October. That is a combination I always like to see. Finally, the number of funds owning ABNB has grown by over 50% since December which is another excellent sign.
It is important to note that Airbnb reports earnings after the close and thus is more likely to experience volatility. Because I have a cushion, I am able to hold ABNB through the earnings report without adding excessive risk to my account.
Risk right. Sit tight.
-Tom
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Full disclosure: I currently own ABNB.
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