Shares of Airbnb Inc (NASDAQ: ABNB) are currently trading at less than the price at which they started the year – and that, as per Jim Cramer, is an opportunity to buy a quality name at a steep discount.
Cramer’s outlook on the Airbnb stock
In November, the vacation rental company reported its financial results for the third quarter that handily topped Street estimates. Speaking positive about the stock this morning on CNBC’s “Squawk on the Street”, Cramer said:
I believe in Airbnb. I would own the stock of Airbnb. I don’t own it for my Charitable Trust, but I think it’s a good company.
Cramer recommends buying Airbnb stock also because he has confidence in the leadership of Brian Chesky – the Chief Executive of Airbnb Inc.
His constructive view is in line with Wall Street that also rates this Nasdaq-listed firm at “overweight”.
Airbnb is committed to affordability
Last month, CEO Chesky reiterated that Airbnb was committed to affordability to retain strength through the impending recession as we reported here. According to Jim Cramer:
When I talked to Brian Chesky, he said nothing about how the high end was not travelling. But somehow, his interview was interpreted as saying that. I went back to Brian, and he said that’s just not true.
Airbnb has recently introduced things like Airbnb Setup and AirCover to make it all the more convenient for hosts to join the platform. In a show of just how easy it is, CEO Brian Chesky himself listed one of his bedroom on the marketplace in November for “zero” dollars.
The Nasdaq-listed firm is expecting up to $1.88 billion in revenue in the holiday quarter – up 20% on a year-over-year basis.
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