The Morning Trade: ABNB Hits 4-Year High After Strong Guidance

network.com. We are back on Morning Trade Live. Let's focus on the one year chart for Airbnb. As you can see here, a nice 16% hop off the back of its earnings. We got some good numbers out yesterday. We're trading at $175 and change right now. A lot of positive comments coming through from the analysts as well. So let's focus on these earnings. And the reaction we're seeing this morning as the focus of the morning trade. Joining us for a closer look at it is Molly Kate and Molly. You and I were breaking down the numbers. We know they look good. We saw the initial positive reaction. Let's also talk about what the analysts have had to say. I've seen an upgrade from Wedbush. What is happening here? Some good results. Sam. A beaten raised quarter that was met with the usual expectation or I guess, the historical expectation of a move to the upside this time, almost 16% to the upside. We were up in after hours in premarket trading. We're up again now that we've opened, and we've got some analysts commentary on these results. So first let's get to the numbers and then I'll tell you what the analysts are saying. We're higher beaten rates. Everything came in better than expected here. Guidance was also raised and higher than the expectations company, citing strong demand across all regions. Their EPS coming in at $1.37 versus the $1.25 that was expected. Revenue coming in at one, excuse me, 3.61 billion versus the 3.58 expected. That's up 17% from the year earlier period. Net income also increasing to 816 million from 642 million a year ago. And for this current period, Airbnb said it expects its revenue to be between 4.69 and 4.77 billion. Analysts had only been looking for 4.61 billion, so the entire range is above the expectation at the midpoint as well. It would also be about 14% growth year over year. Airbnb did say the U.S. and Canada, and in the areas that include Europe and the Middle East, bookings growth was in the high single digits for Asia Pacific. It was in the high teens, and for Latin America they saw bookings growth of about 20%. They highlighted particular strength in Brazil and Mexico and said, quote, overall, we continue to observe market share gains broadly across Latin America, demonstrating the success of our expansion strategy within this region. Free cash flow jumping 30% to 1.25 billion from the year ago period. I mean, overall, they did everything the street wanted. They wanted to show that where they were spending money to expand was working. They showed it. So now we've seen some upward revisions in terms of the sell side. Wedbush now has an outperform rating up from a neutral rating. They have a new price target of $200, up from 152. That's still implies about $25 worth of upside from where we are now. They said they've got positive signals of product initiatives. They think their core platform forms and their single fees are driving strength. While they also cited those new initiatives like hotels are off to a strong start. They view this as a promising opportunity. Citizens also raising its price target up to 190 from 170. They already had an outperform rating. They said they delivered a strong Q2 with accelerating bookings growth and showed resilient travel demand. Barclays also raising their target up to 150 from 125. We are north of that, we're 17585 right now, but they're keeping an equal weight rating on shares here. They said they did update their model on Airbnb based on the figures that they delivered for this past quarter, and also for their projections for the current quarter. But even with that new model, they are holding a price target that's about $25 off where we are right now. So a $50 swing between Wedbush and Barclays outlook. Airbnb sitting dead in the middle right now. Sam. Great stuff. Thank you so much for the details. Molly. Let's trade it now with Dan Deming, managing partner over at K-m Financial. Happy Friday to you, Dan. How would you approach an example trade for Airbnb for this morning for us. I mean a very nice pop post. Yeah obviously earnings here today. Yeah absolutely Sam. And happy Friday to you as well. Yeah this is impressive. You know no doubt about it. A breakout to the upside sitting up about 16% right now. And you know at the top of the range for today maintaining this upward momentum as the market kind of tries to decide where it's going to go. So overall impressive numbers and impressive move. I think you know looking at the move you know I don't want to chase it too dramatically here. But at the same time certainly I think you want to participate in this move. So today's trade example is to try to capture a little bit further upside here. Now initially I looked at the September 1st, 7185 call spread, but I think it could be skewed up to the 1751 90 call spread now. So buying that and then selling the 150 put. And the reason I'm looking at this as a possibility is the fact that selling that put really allows full participation to the upside in that call, spread it finances the cost of that call spread and also gives you the opportunity to get put in the stock at that breakout point of 150. Should we see some weakness over the next quarter? But ultimately, if we see some strength over the next 45 days, this allows full participation in the September call spread. So that's the thought process here is to capture further upside. But if there's some weakness over the next quarter that the opportunity to get put in the stock at the breakout point, and basically it doesn't cost much to do that. So that's the idea here. All right. Sitting at a new 52 week high today on Airbnb as we mentioned a very nice pop. And obviously it looks like AI agents are working for them as well. Dan, really appreciate it. Have a great