Why Airbnb Stock Soared 10% Today

Shares of Airbnb (NASDAQ:ABNB) closed up 10% today after Reuters reported that the company has offered to provide free, temporary housing to 20,000 Afghan refugees worldwide.

So what

As a business move, this has pluses and minuses. Airbnb won’t be making any money from facilitating free rentals, and it will rely on donations from CEO Brian Chesky and its charity Airbnb.org to fund the project. On the other hand, the positive PR that Airbnb will earn from this move is invaluable.  

Meanwhile, beyond PR, Airbnb got some good news yesterday when analysts at DA Davidson reiterated their buy rating and $174 price target on the stock. Second-quarter results at the housing facilitator were “strong,” and Q3 looks on track to be Airbnb’s “strongest revenue quarter ever,” with revenue likely to top what Airbnb collected even in Q3 2019, before the pandemic struck.  

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