Struggling Airbnb Stock Falls on Analyst Downgrade

J.P. Morgan Securities downgraded ABNB to “market perform”

Online lodging marketplace Airbnb Inc (NASDAQ:ABNB) is skidding today, last seen 3.5% lower to trade at $98.71, following a bear note from J.P. Morgan Securities. The brokerage firm downgraded ABNB to “market perform” from “market outperform,” noting that increased post-pandemic travel demand is already priced into Airbnb stock’s value.

Covering analysts were neutral toward ABNB coming into today; however, there is still plenty of room for additional downgrades. Of the 22 firms in question, eight still recommend a “buy” or better rating, while 14 say “hold” or worse. Additionally, short interest is moving higher — up 41.3% in the last two reporting periods — though the 13.35 million shares sold short still make up just a slim 3.6% of the stock’s available float. 

On the charts, today’s negative price action is pushing security back toward its June 16, record low of $92.09, with yesterday’s rally attempt failing at a former floor near the $105 area. In the last nine weeks, ABNB has turned in eight negative weekly returns, and now sports a 38.6% year-to-date deficit.

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