5 Travel Stocks to Buy Despite Recession Fears

2. Airbnb, Inc. (NASDAQ:ABNB)

Number of Hedge Fund Holders: 66

Airbnb, Inc. (NASDAQ:ABNB) is a San Francisco, California-based mobile application and web platform providing lodging for rentals during vacations and other tourism-related activities.

Airbnb, Inc. (NASDAQ:ABNB) reported record-breaking bookings during Q2 2022. The company (NASDAQ:ABNB) recorded an increase of 58% in revenue and closed the quarter with a cash reserve of $9.9 billion. Furthermore, Airbnb, Inc. (NASDAQ:ABNB) posted a YoY increase of 27% in the Gross Book Value. The company has also revealed a share repurchase program of $2 billion in its latest quarterly results.

Following the quarterly results, Bernie McTernan at Needham gave Airbnb, Inc. (NASDAQ:ABNB) stock a Buy rating with a target price of $150 on August 3. The analyst highlighted that the company’s financial position provides room for continued investment to drive growth and allow share repurchases.

ClearBridge Investments also presented its bullish outlook on Airbnb, Inc. (NASDAQ:ABNB) in its Q2 2022 investor letter:

“Airbnb is the leading online platform for alternative accommodations globally. We believe the company is well-positioned to capitalize on the large and growing market for travel and experiences, with the potential for growth in e-travel to be higher post pandemic due to pent-up demand and increased work from anywhere flexibility. Airbnb is highly profitable today, though we see room for further margin expansion ahead. Furthermore, secular underpinnings to growth, a more variable cost structure and strong balance sheet should help the company drive better through-cycle performance as compared to its consumer discretionary peers.”