By 2 Stocks to Add to your Investing Portfolio
Booking.com (NASDAQ: BKNG)
Booking.com is an American travel fare aggregator and Meta search engine company that is owned by booking holdings Inc., an American travel technology company based in Norwalk, Connecticut.
The company’s stock is listed in the biggest dealer market in the world, the NASDAQ with the ticker (NASDAQ: BKNG).
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The stock price is currently trading at a low of $2,345.86 as at close of business on Friday 21st January.
This price is however higher than the lows we saw in the early days of December 2021, but the lowest we have seen so far since the start of 2022.
Booking Holdings had its initial public offering on March 29, 1999, where it was operating at low stock prices in the early years of the decade.
The BKNG stock is one of the most volatile stocks in the bookings and travel industry.
This stock has been influenced by the prevailing economic conditions in the economic world in the last three years, mainly due to the pandemic and other in-house conditions within the company.
For instance, in March 2020, the stocks were trading at the lowest prices of $1,180, the lowest price in the last four years.
The year of 2020 is a year that the stocks of BKNG started a bullish behaviour in the charts.
This bullish nature of the stock prices was due to the opening of travel bans in different nations, and the market began to respond positively.
Earnings of the stock have risen significantly since then with higher highs all the way until we started getting lower lows towards the end of November 2021, where we got lows of $ 2118.
The stock earnings report shows that the company’s revenue rose to $4.7 billion in the last quarter of the year exceeding the estimates of the company.
BKNG closed the year with high liquidity, with the report showing that the company ended the year 2021 with $11.7 billion in cash.
The company had to strategize itself towards the end of the year, in order to get out of the lows and risks of further falls in its stocks.
In order to grow its capital base, the company completed an acquisition of Getaroom, parting with $1.2 billion.
The company also acquired Etraveli group for 1.6 billion euros, adding operations of its flight booking to its portfolio.
This acquisition was a promising act to the stock holders, with prospects of a rise in the stock price, despite the prevailing economic condition. This expansion was a key factor in the rise in stock price.
After these strategic plans of BKNG, the stocks began to strengthen as from December 2021, all the way until we got highs of $2457 around 10th January 2022.
Regardless of the risks we have of emergence of new Corona virus variants, we expect the stocks to rise further since international travels and hotel visits may not be affected any more.
We expect to see a correction of the fall in stock prices that the market is currently operating at, since the acquisitions the company entered into in December 2021.
AIRBNB (NASDAQ: ABNB)
Airbnb, Inc. is an American online market place that specializes in homestays for vacation as well as a tourism service provider, based in San Francisco, California, owned by Brian Chesky.
It’s one of best innovative inventions, founded in 2008 that mainly operates on profits from commissions gained from the client’s bookings proceeds.
Airbnb went public in 2020, where its initial public offering took place in December 9th 2020.
The company started trading its stocks on NASDAQ in December 10th 2020, a day after going public.
The company saw huge demand for its services in the first few months after its founding, with people doing bookings all over the world.
Initially, the company’s stock was trading at a relatively low price of $68 per share.
This demand was reflected in its stocks graph, that rose significantly to highs of $213 in the early days of February 2021, a stock price level that has never been achieved ever since.
The stocks began to fall from March from the impacts of covid-19 cases, which dampened the desire to travel and vacations by potential clients.
Effects of the pandemic meant that less demand for ABNB would be experienced until mid-year. Stock prices particularly fell all the way to the lowest levels of $134 in July.
The reopening of the economy came in and saved the dropping stocks of ABNB midyear.
Bookings started coming in for august holidays, and investors anticipated the company’s stock to get bullish and true to their anticipations, the stocks rebounded strongly towards the end of 2021.
This was reflected in the reports, where the company reported an increment of 67% in revenues in the third quarter.
All the way from November 2020, the company has had a hard time, and its stocks have been trading low, with lower lows in the charts.
This has been contributed by many reasons, one of them being competition from large and established hotel chains in the world.
It’s evident since even some home owners are turning into the Airbnb idea by turning their homes into Airbnbs.
We were expecting higher than ever highs in December, but demand for vacation was lower than expected, and the company’s stocks fell to $157 in December 2021.
ABNB has been trying to strengthen its stocks towards the start of the year 2022.
The company offered potential investors an opportunity to buy, an attempt that saw the stocks fall below the, with the investors holding on to losing positions.
Investors of the ABNB stocks anticipated a rise in value might be forced to close their positions, since the price seems to fall further.
A long term buy position on the ABNB stock is advisable since it’s not likely to fall beyond $150 share price, based on the strengthening conditions in the long run, holders of long positions will gain.
It is likely that demand for ABNB services will rise because people are likely to holiday and plan for longer stays in less populated areas especially if the work from home formula stays in place.
This implies that regardless of Corona Virus tensions, the work from home formula could still be advantageous for Airbnb.
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