Gina Sanchez, CEO of Chantico Global and chief market strategist at Lido Advisors, sees that market valuation as justified.
"If you look at the network of Airbnb, Expedia has yet to get the kind of levels and volume that Airbnb has managed to garner through the building of its network. So those network benefits cannot be underestimated here," Sanchez told CNBC's "Matt Maley, chief market strategist at Miller Tabak, said jumping into Airbnb immediately after its huge initial public offering may not be the best move, though.
"We've got some euphoria in these names right now, but if we get any kind of pullback next year, the pent-up demand is huge, it will provide an unbelievable buying opportunity at some point in the first half," Maley said during the same "Trading Nation" segment.has hit the travel industry hard, Sanchez added that it's not just Airbnb that will benefit from the rollout of a vaccine globally and the reopening trade.
"I don't think that this [industry] is necessarily just a fixed pie that everyone's going to get a slice of. I think the whole pie is going to get larger because there's going to be a tremendous amount of growth, not only in travel, vacation-type bookings but also in business bookings, etc. And I think that's going to open the market for Expedia, for Booking, also directly for the hotels themselves," Sanchez said.
Shares of Expedia and Booking, for example, have already rebounded well off the March lows. Since then, Booking is up 90% and Expedia 220%."These two stocks, like a lot of stocks after the recent rally, they're starting to get overbought on a near-term basis but these two in particular -- not only overbought on a near-term basis, but also on an intermediate-term basis," he said.Booking's weekly relative strength index, a momentum measure, trades at 62 and Expedia's at 68.
$ABNB’s valuation coming in over double what it was initially set for is justified? The entire business almost died bc of Covid.. the effects will last for years and frankly so many communities are cracking down on it. You all have fun w that..
Sure. The pandemic is not impacting short term home rentals...
It doesn’t make sense. Saved you a click.
gross
this is terrible news
It doesn’t make sense, stop promoting this bubble.
It does not make sense.
Answer: it doesn't