Market Commentary

Why Airbnb Stock Is Moving Higher in Recent Days

Rahul Joshua
6 Feb 2024 · 1 minute read

Airbnb (ABNB:US) stock is trading higher at the beginning of a new trading week after the S&P Dow Jones Indices company announced changes in the composition of the S&P 500 and the S&P SmallCap 600 indices.

Blackstone Inc. (BX:US) will replace Lincoln National Corp. (LNC:US), while Airbnb Inc. will replace Newell Brands Inc. (NWL:US)

As a result, ABNB shares rose more than 5.5% in after-hours trading on Friday and are set to open higher on Tuesday.

“The changes ensure each index is more representative of its market capitalization range,” the company said in a press release.

Shares of the companies that are included in the S&P 500 usually rally on the inclusion announcement due to increased visibility, liquidity, as well as passive investment flows. 

Airbnb stock previously gained last Tuesday after Wall Street research firm Bernstein highlighted the attractive investment opportunity it currently sees in Airbnb. 

According to Bernstein's analysis, the decline in Airbnb's stock price in early August created what they consider a "compelling entry point" for investors. The concerns surrounding a potentially challenging transition to a post-COVID normalization in the travel industry have been largely debunked, according to the analyst.

“We see 30%+ potential upside, with an H2 acceleration as peers begin to slow, and ancillary revenue announcements in 2024 as key catalysts,” said analyst Richard Clarke.

Congressman Daniel Goldman bought $15,000 - $50,000 worth of ABNB shares on January 31, when they closed at $111.11. ABNB stock is indicated to open around $140 on Tuesday.

Shares are up 55% year-to-date.