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Time for Airbnb-Heavy ETFs As International Travel Rebounds?
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Airbnb (ABNB - Free Report) slumped on 0.5% on Aug 4 after reporting earnings. The leading platform for travel stays logged solid beats on both top and bottom lines on after the market closed. Airbnb forecast third-quarter revenue above market estimates on Thursday, but industry fears of cooling U.S. domestic demand weighed on the stock by a light margin.
The company’s earnings of 98 cents per share breezed past the Zacks Consensus Estimate of 77 cents, making it nine successive quarterly earnings beats, on $2.48 billion in sales which topped the Zacks Consensus Estimate by 2.81%. Experiences Booked were little bit soft in the quarter, while Gross Value Bookings were a bit higher. Average Daily Rate is moderating, not increasing.
The company expects to log a rebound in urban and international travel but signs of losing domestic business are prevalent as more consumers opt for vacations abroad. The strong U.S. dollar is probably leading consumers to go for an international vacation. Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) is up 2.2% in the past three months (as of Aug 4, 2023).
Higher pent-up demand in the post-Covid world has also been boosting the international travel. Airbnb, which receives a majority of its revenue from outside the United States, said global cross-border bookings increased 16% year over year in Q2.
Time for Airbnb-Heavy ETFs?
The stock has a Zacks Rank #2 (Buy). The stock also has an upbeat Growth and Momentum Score of “A.” Investors who fear the cooling U.S. business can bet on the stock through the ETF approach as the basket approach lowers the company-specific concentration risks. Moreover, a lot of travel-related companies have been gaining traction lately as consumers choose to avail their international summer trips.
Against this backdrop, below we highlight a few ETFs that have high exposure to Airbnb.
ETFs in Focus
Kelly Hotel & Lodging Sector ETF – Airbnb has 12.00% Exposure
Image: Bigstock
Time for Airbnb-Heavy ETFs As International Travel Rebounds?
Airbnb (ABNB - Free Report) slumped on 0.5% on Aug 4 after reporting earnings. The leading platform for travel stays logged solid beats on both top and bottom lines on after the market closed. Airbnb forecast third-quarter revenue above market estimates on Thursday, but industry fears of cooling U.S. domestic demand weighed on the stock by a light margin.
The company’s earnings of 98 cents per share breezed past the Zacks Consensus Estimate of 77 cents, making it nine successive quarterly earnings beats, on $2.48 billion in sales which topped the Zacks Consensus Estimate by 2.81%. Experiences Booked were little bit soft in the quarter, while Gross Value Bookings were a bit higher. Average Daily Rate is moderating, not increasing.
The company expects to log a rebound in urban and international travel but signs of losing domestic business are prevalent as more consumers opt for vacations abroad. The strong U.S. dollar is probably leading consumers to go for an international vacation. Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) is up 2.2% in the past three months (as of Aug 4, 2023).
Higher pent-up demand in the post-Covid world has also been boosting the international travel. Airbnb, which receives a majority of its revenue from outside the United States, said global cross-border bookings increased 16% year over year in Q2.
Time for Airbnb-Heavy ETFs?
The stock has a Zacks Rank #2 (Buy). The stock also has an upbeat Growth and Momentum Score of “A.” Investors who fear the cooling U.S. business can bet on the stock through the ETF approach as the basket approach lowers the company-specific concentration risks. Moreover, a lot of travel-related companies have been gaining traction lately as consumers choose to avail their international summer trips.
Against this backdrop, below we highlight a few ETFs that have high exposure to Airbnb.
ETFs in Focus
Kelly Hotel & Lodging Sector ETF – Airbnb has 12.00% Exposure
Renaissance IPO ETF (IPO - Free Report) – Airbnb has 11.1% Exposure
Global X PropTech ETF (PTEC - Free Report) – Airbnb has 8.13% Exposure
First Trust US Equity Opportunities ETF (FPX - Free Report) – Airbnb has 6.07% Exposure
ALPS Global Travel Beneficiaries ETF (JRNY - Free Report) – Airbnb has 5.42% Exposure
ETFMG Travel Tech ETF (AWAY - Free Report) – Airbnb has 5.17% Exposure