What happened
With barely over 24 hours to go before Airbnb (ABNB 2.51%) was to publish its latest set of quarterly figures, investors pushed the company's stock well higher on Monday. It closed 6.9% above its Friday closing level, greatly outpacing the 1.1% increase of the S&P 500 index on the day.
So what
Airbnb is slated to unveil its fourth-quarter and full-year 2022 earnings shortly after market close on Tuesday. Investors are clearly optimistic that the company will do well and have every reason to be optimistic now that the coronavirus threat seems to be fading quickly. In such an environment, many people remain eager to leave their residences and see another state, country, or continent.
Airbnb certainly doesn't have a monopoly on do-it-yourself (DIY) accommodation services, but it's the brand most readily identified with that durably popular segment.
Analysts think there's plenty of power behind this and are predicting some notable growth for the company's quarter and year. On average for the fourth quarter, those prognosticators believe Airbnb will be able to more than triple its per-share earnings growth (to $0.25) on a year-over-year basis. That's on the back of a strong (nearly 22%) anticipated rise in sales to $1.86 billion.
Now what
Airbnb's performance matters not only for its own stockholders, but also for the wider tourism industry, too. Higher bookings and increases in revenue/profitability from the specialty services provider will show that travel, as a business, remains robust and healthy -- particularly considering that even in the most prosperous times, many folks don't like to travel in the late fall and winter months.
