Airbnb, Inc.

Airbnb, Inc. (NASDAQ: ABNB) is an online and mobile platform that links hosts and guests to rent locations and activities. It guides hosts through the listing process and provides a suite of tools to manage their listings, including scheduling, merchandising, integrated payments, community assistance, host protections, price suggestions, and review comments. It now boasts 4 million hosts from over 220 nations and regions who have hosted over 1 billion visitors.

Why should investors Book Profits?

• Continuing Losses: The company reported net losses of USD 352.03 million in FY21 (ended December 31, 2021) from USD 4.58 billion in FY20, due to a significant proportion of product development, sales and marketing, and General and administrative expenses. The company's annual bottom line has never been positive since its operating history.
• Increase in Debt Profile: The company reported its long term debt, net of the current portion, is USD 1.98 billion as of December 31, 2021, vs. USD 1.82 billion as of December 31, 2020, implying an added risk to its balance sheet.
• Witnessing resistance at the current level: On the daily price chart, ABNB shares are witnessing a sell-off near USD 190. Earlier in November last year, the stock tumbled from the same level and went down to USD 134, a decline of ~29%. Also, the leading momentum indicator, 14-day RSI, reported a reversal on the daily price chart, which seems like bullish momentum is exhausting. So, unless the stock breached its near-term resistance decisively, an upside would be primarily capped.

Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation

(Analysis by Kalkine Group)

* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

Stock Recommendation:

ABNB shares have bagged approximately 21% over the last month and up by ~10% in the previous five trading sessions. However, at the current price level, ABNB shares face resistance and 14-day RSI, indicating that the current rally is getting exhausted, which might bring some consolidation in the stock at the current trading level. We have valued the stock using the EV/EBITDA-based relative valuation methodology and arrived at a target price of USD 165.20.

Considering the rise in the stock price in a short span, solvency risk on its balance sheet, still in bottom-line losses, current valuation, and associated risks, we recommend a "Sell" rating on the stock at the current price of USD 187.89, up 0.65% as of February 17, 2022, at 11:37 AM ET. 

  ABNB's 2-Year Technical Price Chart. (Source: REFINITIV, Analysis by Kalkine Group)

* The reference data in this report has been partly sourced from REFINITIV.

* All forecasted figures and industry information have been taken from REFINITIV.

Coupang, Inc.

Coupang, Inc. (NYSE: CPNG) is a Korean e-commerce services provider. The company's essential offers include home goods and decor, fashion and beauty products, fresh food and grocery, sporting goods, electronics, restaurant order and delivery, travel and everyday necessities, and other items and services. CPNG operates an e-commerce and logistics system and offers delivery services. Additionally, the corporation sells advertising space on its websites and mobile apps.

Why should Investors Sell?

• Rise in Losses: The company reported an increase in net losses to USD 323.98 million in Q3FY21 (September 30, 2021) from USD 173.00 million Q3FY20, due to the rise in operating cost and expenses.
• Margin Stress: In Q3FY21 (ended September 30, 2021), the company's gross margin was 16.2%, compared to the industry norm of 47.6%. The company further witnessed a fall in gross margins from 18.2% in Q2FY21 to 16.2% in Q3FY21, indicating a substantial increase in the cost of revenues.
• Technical Bearish Indicators: CPNG shares are still hovering in a long-term bearish zone, despite the recent recovery of its shared record. At the last closing, CPNG shares traded below its crucial short-term and long-term support levels of 50-day and 200-day SMAs. Moreover, on the daily price chart, its shares form lower highs and lower lows kind of pattern and face resistance of the downward sloping line. This indicates bears are still heavy over bulls.
  

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

(Analysis by Kalkine Group)

* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

Stock Recommendation:

CPNG's stock price has surged 14.99% in the past month and is currently tilted towards the lower end of its 52-week range of USD 16.61 to USD 65.00. We have valued the stock using the EV/Sales multiple-based relative valuation methodology and arrived at a target price of USD 21.02.

Considering the company's escalating losses, fall in gross margins, current valuation, and other technical weaknesses, we recommend a "Sell" rating on the stock at the current price of USD 23.70, up 2.42% as of February 17, 2022, 10:10 AM ET.

CPNG's 1-Year Technical Price Chart. (Source: REFINITIV, Analysis by Kalkine Group)

 * The reference data in this report has been partly sourced from REFINITIV.

* All forecasted figures and industry information have been taken from REFINITIV.

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