5 Best Summer Stocks To Buy Now

4. Airbnb, Inc. (NASDAQ:ABNB)

Number of Hedge Fund Holders: 63

Airbnb, Inc. (NASDAQ:ABNB) is up next on our list of the best summer stocks to buy. As global tourism picks up again, the firm enjoys the spotlight as a platform which connects homeowners willing to rent out their properties to tourists in more than 191 countries around the world.

On May 5, Susquehanna analyst Shyam Patil maintained a ‘Positive’ rating on Airbnb, Inc. (NASDAQ:ABNB) shares, and lowered the price target to $190 from $235. The analyst noted that the hospitality firm enjoyed a strong quarter and looks set to carry its momentum into the peak summer season. He sees the stock as a must-have given its strong positioning, promising long-term opportunity, and profitability improvements.

In Q1 2022, Airbnb, Inc. (NASDAQ:ABNB) reported EPS of -$0.01, which outperformed estimates by $0.22. The company raked in $1.51 billion in revenue for the quarter, growing 70.13% year-on-year and beating estimates by $56.5 million.

As of the fourth quarter, 63 out of 924 elite hedge funds tracked by Insider Monkey held stakes in Airbnb, Inc. (NASDAQ:ABNB) worth $2.97 billion. This shows growing investor confidence over the previous quarter where 58 hedge funds held $2.71 billion worth of positions in the company. Jim Simons’ Renaissance Technologies was the most prominent shareholder of Airbnb, Inc. (NASDAQ:ABNB) in the fourth quarter of 2021, with 3.58 million shares worth more than $597 million.

Here is what Tollymore Investment Partners had to say about Airbnb, Inc. (NASDAQ:ABNB) in its Q3 2021 investor letter:

“Today disruptors are not typically seeking to replace incumbents entirely. Rather, they break the links in the customer journey, in doing so better aligning monetisation with value creation and minimising externalities. For example, Airbnb broke the link between staying in residential property and owning it. Airbnb is a specific example of a business model innovation which separated asset use from ownership. This is hardly a novel idea; it’s called renting. Rental models lend themselves to assets which are expensive and durable, and where usage is infrequent.”