ABNB

ABNB is the stock symbol for Airbnb. It debuted on the Nasdaq exchange in December 2020. Founded by Brian Chesky, Nathan Blecharczyk, and Joe Gebbia, Airbnb, formerly AirBedandBreakfast.com, is an online marketplace for short-term rentals.

 

Their service revolves around tourists looking for accommodation and locals looking to rent out their free spaces. This can range from sharing a room with the owner to whole properties.

 

As travel restrictions eased after the COVID-19 pandemic, the demand to travel skyrocketed and investors saw a golden opportunity. The stock price of ABNB reached an all-time high of USD 219.94 on Feb 2021.

You only need to monitor sentiments on a single brand: Airbnb. If the price is highly volatile, these factors may be the reason:

 

• Airbnb is currently embroiled in many legal disputes, with locals complaining about disruptions in the housing market and hotel chains on the rental market. Several countries have made laws to ensure that the market is regulated, to ABNB's detriment.


• The upturn of the tourism industry directly affects the demand for Airbnb’s services, leading to a higher stock price. The demand for short-term rentals rises the most during holidays and the summer season.


• Airbnb has plenty of competitors, both local landlords and large hotel chains. The increase in competition resulted in an oversaturated supply chain and caused a downward trend in the stock price of ABNB.