Airbnb has made it official.
The company announced this week that it has submitted to go public after submitting a draft registration to the Securities and Exchange Commission.
This comes as travel book shares Expedia and Booking Holdings have shown signs of life. Booking has bound 60% and Expedia 118% off low from March, recovering from losses sustained earlier in the year as the pandemic lessened and lockdowns went into effect.
Danielle Shay, Director of Options at Simpler Trading, avoids Expedia and Booking despite her recent meetings.
“Now look directly at Expedia and booking, the reason I am a lot into these supplies is because of air travel. I mean, book, yes, they have the holiday cottages, but what is it then with air travel? Same with Expedia. Air travel is down 70% year over year, “Shay said on CNBC’s ‘Trading Nation’ on Thursday.
MKM Partners chief technology officer JC O’Hara is also closely regarded airport as a leading indicator for the shares for travel reservations.
“I would closely monitor the daily data of TSA checkpoints. This data basically counts how many passengers pass through the airport over a 24-hour period. It is comparable to downtown traffic for retail,” O’Hara said in the same “Trading Nation.” segment.
To highlight the impact on travel files, O’Hara provided the TSA Checkpoint data on the top of Expedia’s stock listings and bookings.
“We can see that they both came back significantly from those lows of March, but they’ve been flat since June,” O’Hara said. “That I would gradually become more positive on Expedia and Booking as we begin to see a significant pickup in those numbers of airport traffic.”
The number of passengers passing through airport checkpoints fell 74% in July compared to a year ago, according to the Transportation Security Administration.
Airbnb, however, could get a boost from positive momentum in the initial public offering space, Shay said.
“Airbnb looks incredibly hot. The market likes IPOs. This is something that will probably be pretty volatile and it will probably cause some great options trading, especially because of how popular it is during the pandemic,” Shay said.
The Renaissance IPO ETF, which holds shares such as Zoom Video and Moderna, is up 48% this year.
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