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Whereas Airbnb (NASDAQ:ABNB) peaked for the launch of its initial public offering (IPO) at the height of the Covid-19 pandemic, ABNB stock currently has little to show for it. Following JPMorgan Chase’s lower price target to $110 from $185 on Wednesday, shares of the online hosting market fell late morning.
Currently, JPMorgan has a “neutral” rating on ABNB shares, although this may change depending on how the shares perform over the coming weeks. As of this writing, stocks are trading at a new low. For bearish speculators, the next logical downside target is the company’s IPO price of $68 per share. Airbnb debuted in December 2020 with a valuation of $47 billion.
The purple-laden ink represents an unfortunate change of fortune. ABNB stock hit a 52-week high above $212. Now struggling in double-digit territory, stocks need an immediate upside catalyst.
Other analysts weigh in on ABNB stock
If JPMorgan’s price decline was the only headwind, ABNB stock might not have reacted so harshly. However, the pessimism of the financial institution follows other analyst opinions less than stellar.
For example, Morgan Stanley lowered its price target to $100 from $145, setting an “equal weight” rating for Airbnb in a research note published June 23. “surpass.” On a May 4 research note, Mizuho lowered its price target to $175 from $205.
This month, out of 22 analysts, six experts had issued or maintained “strong buy” ratings. However, an analyst issued a “strong sell”, which had never appeared in the past three months. This circumstance suggests that Wall Street is becoming increasingly skeptical of ABNB shares and the underlying viability of its business.
why is it important
Although the devastating impact of the rising rate of inflation on the purchasing power of the dollar created enormous challenges for American households, the travel sector represented a surprising air pocket within the economy. of consumption. Dubbed “voyage of revenge,” the phenomenon stems from a pent-up demand for memory experiences.
The high volume of negativity against ABNB stocks seems to suggest that even this respite in the consumer discretionary sector is fading. If so, investors should be careful not to dive too far into travel-related investments.
As of the date of publication, Josh Enomoto had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.