$ABNB TOP 20
Added 2023-05-14 20:34:25 +0000 UTCInteresting week for $ABNB, it climbed very well leading up to the earnings, raised its head out of the bull flag and almost too aggressively, possibly the market was getting excited for another great earnings. They then reported and missed on earnings and gave a cautious outlook for Q2, they also announced a share buyback program, which for me is a red flag, for a company growing like $ABNB, especially after Covid has reopened.
In my update last week, I alerted a concern to see their CEO on Twitter, asking the public about their issues with $ABNB; 1.) Identifying they have issues and 2.) Doing this 5 days before an earnings report. This was an alarm bell to me and something I would be cautious about and so I updated here that the plan would be to wait until the earnings report released instead of chasing because the price action broke out of the bull flag. This was the right move.
So earnings reported and it wasn't the blockbuster report the market expected and the price sank over -20%. It then entered the buyzone and came EXACTLY to the gap fill price at $104.21 and held, even bounced a little. This was also the 0.65 Fib, so a common place to hold for Wave 2.
So What Now?
The market may have priced in this negative report now and when the dust settles, the buyers may come back, it's certainly an appealing price right now and in the buy zone, so fans of this company should DCA and slowly start a position until the reversal is confirmed, I would only say this in the buy zone.
As a long term hold, this is definitely up there as one of my favourites because I am a big fan of their Moat, I think they have small issues, especially the cleaning fees but I believe these items can be rectified.
