The latest retail spending data indicates a strong slowdown after the holidays. Consumers aren’t entirely tapped out yet. But they do continue to show a propensity to spend more on experiences over goods in the post-pandemic era.
That means that travel and vacation spending is likely to remain strong, and earnings from companies in those industries continue to point to a strong trend. With that trend likely to continue, those companies are starting to see some momentum.
One such play is Airbnb (ABNB). The company is working to expand its offerings, to become more travel-oriented rather than providing a room or home for short-term guests.
With the latest earnings beating expectations and shares rising, Airbnb could become a momentum player for the rest of 2025.
Airbnb shares trade at 35 times forward earnings, a bit pricey compared to the overall market. But if earnings continue to show growth, Airbnb can grow into its higher earnings multiple.
Action to take: Shares are starting to take on both growth and momentum characteristics following its earnings beat, and investors looking for a growth play may find it with shares in the quarters ahead.
For traders, the June $185 calls, last trading for about $5.90, could see mid-to-high double-digit returns, especially if travel trends continue to look strong into the summer. Traders may want to take profits if the option moves in-the-money.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.