In an exciting turn of events for investors, Airbnb (ABNB:NSD) and Blackstone (BX:NYE) experienced significant gains in extended trading after the announcement of their impending inclusion in the S&P 500 index (SPX). ABNB stock surged by 5.6%, while BX witnessed a robust 5% increase on Friday. This article delves deep into the valuations of the stocks and provides insights on ABNB stock forecast.
The Road to the S&P 500:
The S&P Dow Jones Indices recently unveiled a series of transformative changes to their indices, marking the quarterly rebalancing process. This comes effective on September 18 making ABNB and BX stocks integral parts of the prestigious SPX. This is a move that holds significant implications for these companies and their shareholders.
Airbnb is a renowned platform offering homestays and unique experiences. It will be stepping in to replace consumer cyclical stock Newell Brands (NWL:NSD), which saw a marginal decline of 1.2%.
Simultaneously, Blackstone is a financial giant in the private equity arena. It is poised to replace insurance provider Lincoln National (LNC:NYE) which experienced a decline of 1.8%.
ABNB Stock Forecast: Investor Enthusiasm Skyrockets
Investors and market observers greeted this development with enthusiasm for a good reason. A Barrons report states that inclusion in the SPX compels every exchange-traded fund (ETF) and passive investment fund tracking the index to acquire these shares.
Moreover, active fund managers benchmarked to the SPX may contemplate adding these stocks to their portfolios in an effort to replicate stronger performance. Companies that become part of the index typically enjoy enhanced liquidity. Furthermore, they attract heightened interest from investors. These factors could pave the way for further appreciation in the share prices of both Airbnb and Blackstone.
Assessing Airbnb’s Prospects:
Airbnb has been reaping the rewards of surging travel demand as an online travel booking provider. However, concerns about potential economic downturns and persistent inflation loom. This could potentially impede the company’s performance in the months ahead.
Some reports even suggest that an oversupply of lodging properties relative to demand is placing a dampener on the performance of travel agents. Nevertheless, (ABNB:NSD) has shown remarkable resilience, having surged by an impressive 55.19% since the beginning of this year.
ABNB Stock Forecast: Analyst Projections
The current price of ABNB stock is USD 132.69. Based on ABNB stock forecast, 27 analysts have given the average analyst target price of USD 138.76. This is marked by an upside potential of 4.57%. Airbnb has a high market CAP of USD 84.67 Billion. The stock is low in volatility but is overpriced compared to its peers.
In light of the factors mentioned above, analysts’ consensus maintains a cautious yet optimistic stance on the trajectory of (ABNB:NSD). They view the stock as slightly bullish and rate it as “Buy”. The financial industry recognizes these top analysts for their exceptional performance.
Evaluating Blackstone: Is it a Buy or Sell Opportunity?
On the other hand, (BX:NYE) stands tall with the current price of USD 104.49. The average analyst target price is USD 1.5.57 implying an upside potential of USD 105.57. Blackstone has a giant market CAP of USD 129.94 Billion. Year-to-date, BX stock has exhibited an impressive gain of 40.84%.
BX stock is highly volatile but has offered a positive cash flow in the recent four quarters. The joint consensus of analysts views the stock as slightly bullish and rates it as “Buy” also.
ABNB Stock Forecast: A Bright Future Beckons
As Airbnb and Blackstone prepare to take their rightful places in the S&P 500 index, the financial landscape appears promising for both companies. This development holds tangible advantages for shareholders, as it increased liquidity and heightened investor interest.
Airbnb’s journey in a post-pandemic world is marked by its ability to harness growing travel demand while navigating economic uncertainties. Blackstone, meanwhile, has showcased its resilience and strength in the private equity sector. Both ABNB and BX stocks are poised for further growth, supported by an impressive consensus rating.
Final Takeaway:
In a world where the future remains uncertain, these stocks represent beacons of opportunity. Investors would do well to monitor their progress closely and consider the potential rewards that come with their inclusion in the illustrious S&P 500 index. As the market continues to evolve, these companies seize opportunities and forge towards prosperity.
