(Reuters) – Shares of Airbnb Inc and Tripadvisor Inc rose about 9% before the bell on Wednesday, as investors cheered above-estimate forecast and estimate-beating results on strong demand for travel.
A strong U.S. dollar, flexible work arrangements and household savings have led to a travel boom, speeding up the industry’s recovery from the pandemic. Economic worries are yet to make a significant dent to travel demand.
“Travel demand remained strong throughout Q4, with longer lead times for bookings compared to the prior year. These trends have persisted into Q1 despite broader macro uncertainty,” Canaccord Genuity analyst Michael Graham said in a note.
The vacation rental firm forecast current-quarter revenue above market estimates, while the online travel booking firm posted fourth-quarter profit and revenue above expectations.
The brokerage raised Airbnb’s price target to $165 from $145 and retained its “buy” rating.
“ABNB’s print appears to support our view that travel remains resilient despite a more mixed macro,” analysts from Piper Sandler said.
(Reporting by Priyamvada C in Bengaluru; Editing by Janane Venkatraman)
