What Happened?
Shares of online accommodations platform Airbnb (NASDAQ: ABNB) jumped 3.9% in the afternoon session after the company announced a new partnership with fitness app Strava to capitalize on the growing 'runcation' travel trend.
The collaboration aimed to help runners find new rural destinations by pairing popular running routes with nearby Airbnb stays. This news arrived alongside other positive developments for the company. Airbnb also expanded its hotel strategy by adding HotelTonight's booking technology to its app, a move designed to partner with independent and boutique hotels in high-demand markets. Furthermore, the company launched a £1 million fund in the UK to support small businesses and boost local tourism. These initiatives were coupled with valuation analysis that suggested the company’s stock appeared to be undervalued.
After the initial pop the shares cooled down to $123.88, up 4.2% from previous close.
Is now the time to buy Airbnb? Access our full analysis report here.
What Is The Market Telling Us
Airbnb’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 3.1% on the news that President Donald Trump threatened to impose a 'massive increase of tariffs' on Chinese imports, breaking a monthslong period of calm on Wall Street.
The unexpected comments sent major indices sharply lower, with the S&P 500 dropping 1.2% in what was on track to be its worst loss in over two months. The Dow Jones Industrial Average fell 372 points, while the tech-heavy Nasdaq composite slid 1.7%. Tariffs are taxes placed on imported goods, and an increase could lead to higher costs for American companies that rely on Chinese products. These costs are often passed on to consumers, which can dampen spending and corporate profits, creating uncertainty for investors and the broader economy.
Airbnb is down 5.8% since the beginning of the year, and at $123.88 per share, it is trading 23.3% below its 52-week high of $161.42 from February 2025. Investors who bought $1,000 worth of Airbnb’s shares at the IPO in December 2020 would now be looking at an investment worth $856.02.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
