ACTIONABLE TRADING IDEAS

Breakout: Short Stays

By Stephen W. Bigalow

WHILE AIRBNB (ABNB) reported better-than-expected earnings for the quarter—$0.18 versus the estimates of $0.07—the company issued a soft second-quarter guidance. This projection, in conjunction with weaker market direction, led to strong bearish sentiment. It resulted in lower-priced targets by a number of investment firms. The doji pattern, followed by a severe gap down, illustrates strong bearish sentiment. This candlestick formation implies much more downside, especially if it remains below the T-line.

Airbnb (ABNB)

Industry: Hotels/Resorts

Market: $73.4 billion

Employees: 6,811 (as of 2022)

Beta versus SPX: 101

One-year return: -9.36%

Analysts' target (Avg.): $103.00

Stephen W. Bigalow, a veteran of 45 years of investing, directs a candlestick analysis learning forum at candlestickforum.com.