(Via ZEXPR) The pent-up demand for travel is one to look forward to since it has been quite a year. But ever since the reports of the vaccines have come through, travel is one sector that hangs in wait.
It is no joke that the travel market is ready to explode anytime now.
For one, this comes along right after President Biden announced the availability of the coronavirus vaccine for every American by the end of May. He made this announcement right after the Johnson & Johnson vaccine gained approval.
Israel has issued a report stating that almost half its population has already been vaccinated. The U.K. is also well on its way to fast-track approval of vaccines in order to cater to the growing demand.
Either way, all these reports sum up the fact that countries are well on their way to walk out of the pandemic and ease their travel restrictions. While some countries have already allowed international travel, there are some like Australia that are still holding it down. But from the looks of it, it won’t be long after the rollout of the vaccine that the demand for travel hits its peak.
365tradingfx analyst reviews the Airbnb stock and how it will experience a hike owing to this increase in demand and this will help you assess whether or not to put it on your watchlist for March 2021. This will put you ahead on your investments in this almost-erupting market.
Now, this company needs no introduction for it is most definitely the leading home-sharing platform in the international market. Its name itself is synonymous with home-sharing giving this company a brand that is both used as a verb and a noun.
This company has based its model on approachability and convenience and has benefited from its e-commerce marketplace operations. With leisure travel bookings already making their rebound in the market, Airbnb is set to expand its profit scale as it takes commissions on bookings.
Even though, the company did hit a rough patch amidst the health crisis last year, as it caused it to slim down its cost structure by laying off a quarter of its employees. The lockdown did less good to its marketing structure and other costs hung in the balance.
However, despite the hurdles, it managed to pull through by delivering $500 million in adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), This was reported in the second half of 2020 and was enough to dispel any concerns regarding the company’s profitability ratio.
365tradingfx analyst moves forward to depict how the company continued to surpass expectations despite the unstable norms.
“For Airbnb, the biggest highlight was the first quarterly report that it presented as a publicly-traded company, which proved to be a big winner of the economic reopening.”
The idea that the company is set to benefit from the increase in travel demand and will likely be taking in new hosts looking to make an extra buck after the economic shock of the pandemic. Not only that, it seems that the rise of remote work will also work in the company’s favour and allow it to grow, with young people coming in to take advantage of long-term Airbnb stays to travel while they are getting paid. On the other hand, they will also be able to rent out their own homes while they are travelling.
Hitting The Market Strongly
Airbnb has a few things working in its favour as a new wave emerges in the market. From the looks of it, this stock can garner itself long term stability even post-pandemic.
What started with Air, Bed and Breakfast has now become a reliable host to millions. This online marketplace company is set to come back up owing to its customer’s appetite for travel after the hard time faced last year.
The travel industry gears to come back stronger and Airbnb stands tall even with its competitor Booking Holdings. Wall Street has already estimated the latter’s growth prospects as inferior.
365tradingfx analyst affirms the reasons for investors valuing the company at a discount compared to its growing competitor Airbnb.
The Airbnb stock may seem a little pricey especially after its post-IPO surge, but with reports coming in regarding the revenue and profit surges in the second of the year, several analysts have lined up their predictions.
365tradingfx analyst estimates the revenue growth for the year to hit well past the 39% current estimates. Guess we will have to wait and see how the company manages to live up to the expectations of its investors and market analysts alike.
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