4. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 57
Airbnb, Inc. (NASDAQ:ABNB) is a California-based company that operates an online marketplace delivering lodging and travel experiences. Airbnb, Inc. (NASDAQ:ABNB) offers cruise bookings online as well. The company had its most profitable Q2 ever, with a net income of $379 million. Airbnb, Inc. (NASDAQ:ABNB) also announced a $2 billion share repurchase program. The management expects a Q3 revenue between $2.78 billion and $2.88 billion, versus a consensus revenue estimate of $2.78 billion.
On September 23, Tigress Financial analyst Ivan Feinseth maintained a Buy recommendation on Airbnb, Inc. (NASDAQ:ABNB) but lowered the price target on the shares to $160 from $214. As travel demand shrinks from peak levels, the analyst sees a short-term re-rating of valuation, but argued that Airbnb, Inc. (NASDAQ:ABNB)’s robust brand equity and “industry-leading status as the alternative lodging provider remains intact.” Airbnb, Inc. (NASDAQ:ABNB) will continue to benefit from travel trends that favor its unique travel offerings, the analyst added.
According to Insider Monkey’s data, 57 hedge funds were bullish on Airbnb, Inc. (NASDAQ:ABNB) at the end of June 2022, compared to 66 funds in the earlier quarter. Jim Simons’ Renaissance Technologies is the largest position holder in the company, with 5.60 million shares worth $499 million.
Here is what Brick By Brick Capital has to say about Airbnb, Inc. (NASDAQ:ABNB) in its Q2 2022 investor letter:
“What is millennial tech?
It is a term I have coined to describe the type of companies I research. It is a disruptive technology that is changing the status quo of a given industry. For example, Airbnb (NASDAQ:ABNB) with the lodging industry. This definition casts a wide net in terms of what sectors I look at, but it is very specific in terms of what type of companies I look at. I also believe focusing on these companies gives me an inherent edge over Wall St. as they are often older and disconnected from what is truly innovative.
Small-to-mid cap companies
This refers to the size of the underlying company and specifically companies whose market capitalization are under $10 billion. Now $10 billion is a huge number, but for example Airbnb has a $74 billion market cap.
These small to mid-cap companies are often under-followed by Wall St. and therefore lead to opportunities to make money. This is because the lack of coverage creates fundamental misunderstandings about the businesses, which then creates a divergence between the stock price and underlying business prospects. Also, many investment managers cannot own these smaller stocks due to their own mandates, which I feel gives me an inherent edge as there are less eyeballs on the name and therefore information gaps that I can uncover.
Many assume there is a multitude of factors that make stocks go up or down when in reality it all boils down to one singular thing.”
