On September 1, shares of Airbnb (NASDAQ:ABNB) and Blackstone (NYSE:BX) jumped in extended trading on news of their joining the S&P 500 index (SPX). ABNB stock jumped 5.6%, while BX rose nearly 5% on Friday.
The S&P Dow Jones Indices announced a series of changes to their indices as part of the quarterly rebalancing process. Effective September 18, both ABNB and BX stocks will join the SPX. Specifically, Airbnb, the platform for homestays and experiences, is stepping in to replace consumer cyclical stock Newell Brands (NASDAQ:NWL), which fell 1.2%. Meanwhile, private equity behemoth Blackstone is replacing insurance provider Lincoln National (NYSE:LNC), which declined 1.8%.
Investors cheered the news because, as per a Barrons report, inclusion in the SPX means that every exchange-traded fund (ETF) and passive investment fund tracking the index will have to buy these shares. Similarly, every active fund manager benchmarked to the SPX could consider buying these stocks to replicate stronger performance. Plus, stocks that form a part of the index usually have more liquidity and garner higher interest from both individual and institutional investors. All these factors could lead to further share price appreciation for both companies.
Is Airbnb Stock a Buy, Sell, or Hold?
The online travel booking provider is benefitting from rising travel demand. Even so, a fear of an incoming recession and sticky inflation could hamper its performance in the coming months. Some reports even suggest that the excess supply of lodging properties over demand is dampening the performance of travel agents. Nonetheless, ABNB stock has gained 56.3% so far this year.
Meanwhile, for similar reasons noted above, Wall Street remains cautiously optimistic about ABNB’s stock trajectory. Out of the 20 Top Analysts who recently rated Airbnb stock, eight have given it a Buy, 10 have given it a Hold, and two have given the stock a Sell rating.
Top Wall Street analysts are those awarded higher stars by the TipRanks Star Ranking System. This is based on an analyst’s success rate, average return per rating, and statistical significance (number of ratings).
Based on these views, Airbnb has a Moderate Buy consensus rating. On TipRanks, the average Airbnb price forecast of $151.74 implies 14.4% upside potential from current levels.
Is BX Stock a Buy or a Sell?
With 11 Buys and three Hold ratings, Blackstone stock commands a Strong Buy consensus rating. On TipRanks, the average Blackstone price target of $115.62 implies 10.7% upside potential from current levels. Year-to-date, BX stock has gained 40.9%.
In the meantime, investors looking for the most accurate and profitable analyst covering BX stock could follow Michael Cyprys from Morgan Stanley. Copying his trades on this stock and holding each position for one year could result in 87% of your transactions generating a profit, with an impressive average return of 37.77% per trade.
