The stock market will usually dump shares of firms that disappoint investors. However, market conditions are unpredictable today. Super Micro Computer (SMCI) said that it would split the stock 10-for-1. It reported a 143.6% Y/Y increase in revenue to $5.31 and yet SMCI stock lost 20% on Wednesday.
SMCI forecasts FY 2025 revenue of $26 billion to $30 billion. This is slightly above the $23 billion consensus estimate. The stock will open at around $493, below the $500 support line, giving investors who missed its last run-up a better stock price.
The market’s reaction to SMCI’s results is problematic. When Nvidia (NVDA) posts quarterly results, it will most likely greatly exceed the most bullish forecast. The stock could fall after the report.
Airbnb (ABNB) will continue yesterday’s drop of 13.4%. Markets are re-assessing the softness of the travel market. Consumers are changing their spending habits. They are hesitant to book further in advance.
Watch Expedia (EXPE) and Tripadvisor (TRIP) fall in sympathy with ABNB stock.
In the long term, Airbnb may end up listing only hotel rooms. This removes its differentiation from hotel firms. Investors may consider buying Hilton Worldwide (HLT) or Marriott International (MAR). Despite the changing trends, ABNB stock is inexpensive at a 15.4 times price-to-earnings ratio.
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