Airbnb stock price: golden cross forms as insiders dump shares

Airbnb (NASDAQ: ABNB) stock price has staged a strong comeback this year as travel demand continued rising. The shares jumped to a high of $140, the highest level since February 16th. They have jumped by over 67% from the lowest level in 2023.

Airbnb insiders are selling

Airbnb is doing well as investors cheer the ongoing recovery of the travel industry. Most analysts believe that travel this year will be much higher than where it was last year. And with inflation falling, there is a possibility that more people will travel both for leisure and business.

This trend has been evidenced by Airbnb’s recent financial performance. In the most recent quarter, the company’s revenue jumped by more than 20% to $1.8 billion. As was expected, its Q1 revenue was a few points below Q4’s $1.9 billion.

Airbnb has also become a more profitable company. Its net income in the first quarter came in at $117 million, down from a loss of more than $19 million in the same quarter in 2022. 

Analysts are optimistic that Airbnb’s revenue growth will continue in the next decade. Expectations are that its revenue will be $9.48 billion this year. It will cross over $20 billion in 2029.

Airbnb is also expected to be highly profitable. Its earnings per share is expected to jump to $3.45 this year and reach $10.42 in 2030. Therefore, while Airbnb is vastly overvalued, analysts believe that the company’s growth justifies it.

However, there is a red flag in the stock. A look at insider transactions shows that many leaders in the company has been selling their stock. In the past 12 months, these insiders have sold over $741 million worth of stock. 9 insiders have sold their holdings and none have bought it. 

Insiders still hold about 30% of the company’s stock, which is much higher than other tech companies like Tesla and Meta. 

Airbnb insider transactions

Airbnb stock price forecast

ABNB chart by TradingView

ABNB has highly positive technicals. On the daily chart, the shares have moved above the important resistance point at $129.15, the highest level on May 9th. It has moved above the upper side of Andrews Pitchfork tool. Also, the ABNB stock price has risen above the 38.2% Fibonacci Retracement level. 

The shares have formed a golden cross, which happens when the 50-day and 200-day moving averages make a bullish crossover. Therefore, the outlook for the stock is still bullish, with the next level to watch being at $144.13, the highest point on February 17th. A move above this level will see it jump to the next key level at $150.