Market participants exercise their idiocy once again. Airbnb, Inc. (ABNB) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to a loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 80%. A quarter ago, it was expected that this company would post earnings of $0.27 per share when it actually produced earnings of $0.48, delivering a surprise of 77.78%.
Yet the idiots out there were disappointed because bookings didn’t meet the arbitrary expectations of Wall Street. The same idiocy we saw recently with many stocks (example given is Netflix and their subscribers, or Apple and the number of sold iPhones, etc.). Generally, this number doesn’t matter. Next quarter, it can be a totally different number and the opposite story. Reacting now to the past numbers that are already history is idiotic. Look ahead. Look to the future. What is the prospect?
But this is a great opportunity to add shares of this company to a portfolio. I ranked this stock as an aggressive buy in my weekly newsletter and this selloff provides an even better opportunity.
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