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  • Stonks: $ABNB Analysis, Bumble AI, NVAX Play, and Car Insurance Play

Stonks: $ABNB Analysis, Bumble AI, NVAX Play, and Car Insurance Play

Author

Michael Luo
May 13, 2024

Here’s the latest “under the radar” stock news from Reddit in the last 24 hours that you don’t want to miss, as picked by Fluid Bot’s AI. And don’t miss out on the Airbnb earnings deep dive at the end!

  • NovaVax (NVAX) stock surged over 100% due to first quarter earnings.

  • One person turned $160 into $15.5k overnight with options trading.

  • History shows the stock has potential to squeeze to previous highs.

  • Recent partnership announcement with Sanofi has revived outlook.

  • Institutional investors hold majority of float, making a significant decrease in share price unlikely.

  • NVAX is one of the most highly shorted stocks, with potential for a massive short squeeze.

  • Next squeeze trigger price is $20-$24, with potential to reach $60+ if shorts are forced to cover.

  • Investor holds 60 $10c Jan 2026 calls, believing share price will reach $40 in a few months.

  • Tesla is offering limited time 1% APR on Model Y

  • Seen as a desperate measure to boost sales numbers

  • Selling direct and self-financing cuts into profits

  • Bumble founder Whitney Wolfe Herd suggested the idea of AI concierges dating each other in the future to find matches

  • Would help users avoid awkward first dates

  • Believes this AI technology can lead to more healthy relationships

  • Bumble stock trades at just over $11 per share, a decrease from its post-pandemic high in 2021

  • Match Group Inc, parent company of Tinder and Hinge, also experienced a decrease in share price, falling from $169 to around $30

  • Root, Inc. provides auto insurance through a direct-to-consumer model using telematics to determine safe drivers

  • Root's utilization of telematics has led to industry-leading loss ratios

  • Company has a low float of ~14.92M shares, with ~31% short interest.

  • Market makers may have net short exposure due to selling call options

  • Root IPO'ed in 2020 and later faced financial struggles before receiving investment from Carvana

  • Q1 2024 earnings showed positive operating cash flow and strong growth in policies

  • Root's partnership channel, with Carvana being a significant partner, helps drive revenue growth

  • Root's low risk driver focus and use of telematics give it a competitive advantage over traditional insurers

  • Root trades significantly below comparable companies, with potential for 3x upside based on valuation

I read through Airbnb’s latest earnings (with the help of AI) so you didn’t have to. Here’s what you need to know:

🤖 Recommendations by AI 🤖:

  • Buy stock long term if you think events like Olympics and new products like Icons will help Airbnb beat future earnings & outlook for the year

  • Short/don’t buy if you think Airbnb has lost it’s fast growth rate and won’t hit sky high expectations.

🚀 Airbnb BEAT estimates 🚀

Airbnb's earnings have soared past estimates, with revenue climbing 18% to $2.14 billion last quarter, outpacing the $2.06 billion the Street was whispering about. Earnings per share? They didn't just climb—they practically pole-vaulted from 0.18 to 0.41, leaving analysts' $0.24 guess in the dust.

💸 So why did it beat? 💸

A shift in the Easter holiday to Q1, some sweet interest income, and a masterclass in revenue growth and cost discipline have fattened those profit margins. Plus, let's not forget the eclipse chasers – over half a mil guests stayed with Airbnb to catch the solar spectacle, doubling down on nights stayed, especially in those hotel-less rural spots.

📉 But here comes the plot twist 📉 Despite the earnings beat, Airbnb's stock took a 6% nosedive. The reason? Sales forecasts for this quarter are not exactly high-flying, with projected revenue of 2.68 billion to 2.74 billion—just 8% to 10% growth. Blame it on the Easter bunny hopping quarters, an extra day in Q1, and some pesky currency headwinds.

🏠 New products 🏠

New on the block is 'Icons'—Airbnb's shiny new product line offering stays in pop culture palaces like Disney and Pixar's "Up" house (balloons included). It's cool, but will it stick, or is it just a flash in the pan? Unless they can keep the hype real with more Netflix-level popups or Supreme-style drops, we might just swipe left on this one.

🌍 Growth horizons? 🌍 Airbnb's still got some fresh turf to conquer internationally, with domestic travel being their main squeeze. But borders are opening, and people are crossing them. Plus, folks are booking longer stays—three months or longer bookings are up by 25%.

📊 So, what's the move? 📊

If you're betting on Airbnb to keep smashing it with events like the Olympics and their new 'Icons', then you might want to go long on their stock. But if you're feeling the growth spurt is over and they're about to hit a plateau, maybe it's time to swipe left on this one.