Airbnb will replace Newell Brands in the S&P 500.
Gabby Jones/Bloomberg
Airbnb
stock was climbing Tuesday following the announcement that the provider of short-term lodgings is joining the
S&P 500.
Airbnb
(ticker: ABNB) will replace
Newell Brands
(NWL) in the
S&P 500
on Sept. 18.
Investors appeared pleased as trading resumed following the Labor Day weekend. Shares of the hospitality company jumped 8% Tuesday, putting them on pace for their largest daily percentage increase since Feb. 15, according to Dow Jones Market Data. The stock was also the best performer in the Nasdaq 100 Tuesday.
The move for Airbnb to be added to the index comes after the stock has surged 67% this year, benefiting from an increase in travel demand that has aided hotel and airline stocks in general. Airbnb’s most recent financial results, disclosed in early August, included higher earnings and revenue than Wall Street expected.
“Guest demand at Airbnb remained strong,” Chief Executive Brian Chesky said in the company’s latest earnings call. “Nights and Experiences Booked increased 11% in Q2 compared to a year ago. Active bookers grew in every region, and we had more first-time bookers compared to a year ago.”
That continued travel demand has given some Wall Street analysts reasons to be bullish on the stock.
“ABNB continues to benefit from strong travel demand and the ongoing consumer shift to alternative, better-value accommodations,” Tigress Research analyst Ivan Feinseth wrote in a note Aug. 22.
“ABNB’s ongoing investments in marketing initiatives, innovation, and introduction of new features combined with international expansion will continue to drive accelerating Business Performance trends,” Feinseth said.
Write to Angela Palumbo at [email protected]
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