Airbnb (ABNB) investors aren't reacting favorably to the apartment-rental company's earnings, with the shares down almost 10%.
The reaction comes after the company reported a top- and bottom-line beat as sales grew almost 29% year over year. Further, Airbnb reported record bookings.
But the outlook was not quite as rosy, which is weighing on the stock price today.
RealMoney’s Bruce Kamich said, “don’t rush to book a stay in Airbnb shares ahead of earnings,” and his advice was prudent.
The post-earnings slump in Airbnb stock is also weighing on names like Expedia (EXPE) and TripAdvisor (TRIP), which are down 5% and 3%, respectively.
As Airbnb stock teeters on a key support level, this afternoon’s rate-hike decision from the Fed may be the deciding factor.
Not that interest rates and Airbnb stock are highly correlated, but a favorable and sustainable marketwide rally to the Fed’s announcement could drive buyers into Airbnb, while an unfavorable reaction could bring in more sellers.
Trading Airbnb Stock on Earnings
Chart courtesy of TrendSpider.com
Shares of Airbnb rallied nicely off the July lows but reversed lower at a key level.
The $125 to $135 zone has become pivotal for Airbnb stock, and most recently it has solidified as resistance.
After the pullback, the shares found support at $100 in September. Now that level is under pressure and Airbnb tests the waters below.
From here, the bulls desperately need the $95 to $100 area to act as support. Prior support is near the latter, while the 78.6% retracement is near the former.
If this zone breaks, it opens the door back to the mid-$80s along with a retest of the lows.
On the flip side of all this, what happens if Airbnb stock reclaims and stays above $100?
In that scenario, we’ll have a post-earnings low to measure against and the bulls can look for a push back to the 10-week and 21-week moving averages and the 50% retracement of the current decline, (all between $108 and $110).
Above that puts $120 in play, then the all-important $125 to $135 zone.
For now, though — and speaking bluntly — Airbnb stock does not have the wind at its back and the charts do not look that constructive, particularly versus some of the nontech holdings that are doing quite well.
