Skip to content
Jim Cramer says Airbnb’s recent weakness is a buying opportunity

 | News Today

Jim Cramer says Airbnb’s recent weakness is a buying opportunity

| Today Headlines | Fox News


CNBC’s Jim Cramer said Tuesday he believes Airbnb would be a successful long-term investment, pointing to the stock’s recent weakness as a potential buying opportunity for other bulls in the company.

“I think it’s one of those babies that was thrown out with the growth stock bathwater,” the ‘Mad Money’ host said, referring to Airbnb’s steep decline since then. mid-November as many high-growth tech stocks fell out of favor. Wall Street.

“While Airbnb is lumped in with the recent IPOs because it went public 13 months ago…this thing is actually profitable. It makes a huge difference in a market that suddenly cares about revenue at all costs “Cramer said.

Still, Airbnb shares are down about 27% from their highs, Cramer acknowledged.

“Maybe it’s down 30%. Hey, maybe it’s down 40%. Stagger your purchases, grow as it goes down, like we do in the [CNBC Investing Club]”, he said. “I think it’s a fabulous long-term winner that can beat Wall Street’s earnings estimates, and since they deliver these numbers better than expected, the stock should be able to to make a major comeback.”

The coronavirus pandemic has challenged many companies in the travel industry and has done so once again with the spread of the Covid omicron variant. Cramer said he expects Covid cases in the United States to decline soon, providing a boon to Airbnb and the entire travel complex.

“But even if I’m wrong and we keep getting hit with worse variants, I still feel pretty good about Airbnb’s prospects,” Cramer said, saying some people see Airbnb as a safer way to travel. during Covid as they can stay in a rented house that is entirely theirs. “That’s why I’m not particularly worried about omicron crushing Airbnb’s numbers right now.”

Additionally, Cramer said he believes many people who first turned to Airbnb during the Covid crisis will continue to use the home rental platform for future trips. The rise of remote work is another tailwind for the company, he said.

“Look, you don’t know when a growth stock will stop falling, but if it’s profitable like Airbnb, it gets cheaper the lower it goes, which means you can justify buying it on the way down,” Cramer said.

Register now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Jim Cramer says Airbnb’s recent weakness is a buying opportunity

| Today Headlines News Today
cnbc

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.