For his third "Executive Decision" segment of his Mad Money program Tuesday, Jim Cramer checked in Brian Chesky, chairman and CEO of Airbnb (ABNB) , which just posted a strong quarter that included a 70% increase in revenues, as travel continues to make a comeback.
Chesky explained that the new world of "work from anywhere" has opened a lot of doors for employees, who are now traveling more, traveling longer and staying at more diverse locations than ever before. Airbnb embraces these changes and now allows its own employees to work from anywhere.
Airbnb has also been an instrumental player in helping to find housing for refugees around the globe, including in Ukraine. Chesky said kindness still exists in the world and thanks to the charity of many, Airbnb is hosting tens of thousands of refugees as they get back on their feet.
We looked at ABNB on January 19 and wrote that "ABNB may make money but investors are likely to be disappointed as prices are pointed lower. Avoid the long side for now."
Let's check the charts again.
In this daily bar chart of ABNB, below, we can see that prices have traded in a choppy sideways trading range so far this year. Prices have crisscrossed the 50-day and 200-day moving averages several times.
The On-Balance-Volume (OBV) line has weakened since November. The Moving Average Convergence Divergence (MACD) oscillator has slipped back below the zero line for an outright sell signal.
In this weekly Japanese candlestick chart of ABNB, below, we see a less than compelling picture. Prices have traded sideways for several months. We can see upper shadows and lower shadows. Prices are currently below the cresting 40-week moving average line.
The weekly OBV line is rolling over and the MACD oscillator is bearish.
In this daily Point and Figure chart of ABNB, below, we can see a downside price target of $137.
In this weekly Point and Figure chart of ABNB, below, we can see a potential downside price target in the $73 area.
Bottom-line strategy: In the near-term ABNB could bounce but the charts and indicators suggest more weakness is possible.