The Booktopia Group Ltd (ASX: BKG) share price has returned from the public holiday in style.

In morning trade the online book retailer’s shares were up a massive 15% to a record high of $3.06.

When the Booktopia share price hit that level, it meant it was up 33% from its December IPO price of $2.30.

Why is the Booktopia share price rocketing higher?

Investors have been buying Booktopia’s shares today following the release of an update on its first half performance.

According to the release, Booktopia continued to experience strong demand for its products throughout the Christmas period.

And thanks partly to its recent investment in additional automation and the increased capacity of its distribution centre, it delivered a record month in December and a record half year performance.

The first stage of its $20 million expansion and automation project at the Lidcombe Distribution Centre in Sydney was completed in November. It increased Booktopia’s outbound capacity from 30,000 units to 60,000 units per day.

This allowed the company to ship a record 728,000 units during the final month of the year, bringing its total shipments to 4.2 million units for the half. This is a 40% increase on the same period last year.

This underpinned a 52% increase in unaudited half year revenue to $113 million and a 506% increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to $8 million.

Outlook

Management notes that the increase in trading volumes compared to the previous year is consistent with other online retailers and a continuation of the shift towards online shopping experienced throughout 2020 because of the pandemic.

In light of this and the ongoing uncertainty around COVID-19, it has warned that its first half performance should not be seen as an indication of the potential full year result.

However, Booktopia’s CEO, Tony Nash, remains very positive on the future.

He commented: “The Christmas period saw strong demand from customers. Our investment in additional capacity and automation allowed us to meet customer orders in a timely fashion and ensured we were able to have the biggest December in the history of the company.”

“We are confident the momentum and growth we experienced in 2020 should continue throughout the year and beyond and as a result the business is on track to meet forecasts provided in the company’s prospectus,” he added.

More reading

• 3 mammoth IPOs of 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Nitro Software Ltd (ASX: NTO) share price has been a very strong performer on Wednesday morning.

In early trade, the document productivity software company’s shares are up 7% to $3.27.

Why is the Nitro share price surging higher?

Investors have been buying the company’s shares following the release of its fourth quarter update this morning.

According to the release, the company completed the fourth quarter and FY 2020 with annualised recurring revenue (ARR), subscription revenue, and cash receipts above its prospectus forecasts.

In respect to its ARR, Nitro finished the year with ARR of US$27.7 million, which was up 64% on the prior corresponding period. This also compares favourably to its previously upgraded guidance of US$26 million to US$27 million.

Nitro also revealed that its subscription revenue has now increased to approximately 58% of total revenue and comprised approximately 78% of revenue across the dominant Business sales channel. It notes that this reflects strong progress in Nitro’s transition to a subscription revenue model.

The company now serves 11,700 business customers, including 68% of the Fortune 500, and saw over 1 million Nitro Sign eSignature requests sent during the year. Key expanding and renewing accounts in the period included Lufthansa, Swiss Mobiliar, Pike Corporation, PPD, USI Insurance, and Citco.

What about its full year results?

In respect to its full year results, Nitro expects to report total FY 2020 revenue in line with its prospectus forecast of $40.5 million.

Management also advised that it expects to post an operating loss (excluding share-based payments and FX) within the range of $2.1 million to $2.6 million. This compares to its prospectus forecast of a $4 million operating loss. This better than expected performance was due to the slower pace of planned hiring and lower required marketing investment to achieve its sales goals.

At the end of the period, the company had a cash balance of US$43.7 million and no debt. Management believes this provides it with a strong financial position to pursue growth opportunities.

Nitro’s CEO and Co-Founder, Sam Chandler said: “We achieved a very strong finish to 2020 as the transition to digital workflows and productivity anywhere remains a priority for organisations of all sizes. Our results are testament to the quality of our products and the incredible efforts of the Nitro team in delivering continued acceleration in subscription sales and revenue. As the world navigates the ongoing disruption caused by the COVID-19 pandemic, we will continue to provide our customers with best-in-class solutions for remote work and digital productivity.”

“We’re honoured to serve 11,700 Business customers, including 68% of the Fortune 500, and we look forward to continuing to drive digital transformation around the world in 2021 and beyond,” he concluded.

More reading

• 3 exciting small cap ASX shares to watch very closely
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• Why Nick Scali, Nitro Software, Silver Lake, & Xero shares are dropping lower
• Top ASX shares to buy in January 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Syrah Resources Ltd (ASX: SYR) share price slumped 6.9% lower on Monday as the Aussie graphite miner closed its share purchase plan (SPP) at a steep discount.

In early trading today, Syrah shares have gained slightly, up 0.57% at $1.22 at the time of writing.

Why did the Syrah share price fall 7%?

Syrah announced the results of its SPP, which closed on Wednesday 20 January. Syrah’s SPP targeted raising $12 million in new equity at a price of $0.90 per share.

The SPP was “heavily oversubscribed” with the Aussie miner receiving $63.7 million of valid applications. Applications for the SPP came at the same price as the recently completed $56 million share placement.

As a result of the oversubscription, Syrah’s board of directors decided to accept a total of $18 million from the SPP. The new shares are set to be issued on Thursday with scale back on a pro-rata basis.

Syrah managing director Shaun Verner welcomed the shareholder support. The funds will be used to progress Syrah’s natural graphite active anode material (AAM) facility in Louisiana, USA. The company is working towards a final investment decision in the second half of 2020 for the construction of a 10 kilotonnes per annum facility.

The Syrah share price slumped lower on Monday following the update on the SPP. It’s worth noting the $0.90 offer price is a steep discount to the closing Syrah share price on January 20.

Shares in the Aussie graphite miner closed at $1.19 per share last Wednesday before climbing to a new 52-week high of $1.34 per share on Thursday.

How did the graphite miner’s shares perform in 2020?

The Syrah share price rebounded strongly in 2020 after years of lacklustre performance. From late January 2016 to January 2020, shares in the Aussie graphite miner fell 86.1% lower.

2020 represented a turning point of sorts with the Syrah share price climbing 134.6% higher in the last 12 months.

The Aussie graphite miner boasts a market capitalisation of $582.1 million as at Monday’s close of trade.

More reading

• Why Ampol, Flight Centre, Syrah, & Telix shares are dropping lower
• The Syrah (ASX:SYR) share price is up 8% today. Here’s why
• Why the Syrah Resources (ASX:SYR) share price has more than doubled in 3 months

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Asaleo Care Ltd (ASX: AHY) share price has come under pressure on Wednesday.

At the time of writing, the personal care products company’s shares are down 1% to $1.27.

Why is the Asaleo Care share price dropping lower?

Investors have been selling the company’s shares this morning following the release of an update on both its performance in FY 2020 and a recent takeover approach.

In respect to FY 2020, Asaleo Care reported unaudited full year revenue of $419.2 million, which represents a 2.3% year on year increase.

This was driven by a strong performance in all retail segments and the B2B Incontinence Healthcare segment, which were collectively up 6.7%. Offsetting some of this growth was a 4% decline in B2B Professional Hygiene, which was impacted by COVID-19 restrictions on “away from home” activity.

Asaleo Care’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $87.2 million for the 12 months. This was ahead of its previous guidance of the upper end of $84 million to $87 million. Excluding discontinued businesses (Baby NZ), underlying EBITDA was up 6.3% to $89.2 million.

At the end of the period, the company’s net debt had reduced from $139.3 million to $94.9 million. It believes this gives it the balance sheet flexibility to fund dividends and accommodate accretive bolt-on acquisitions.

FY 2021 and FY 2022 Guidance

Management believes the company is well-placed to deliver continued revenue growth in FY 2021 and margin expansion from FY 2022.

In light of this, in FY 2021 it is targeting revenue growth of 5% to 7% and EBITDA of $90 million to $93 million.

After which, in FY 2022 is aiming for mid-single digit revenue growth and EBITDA growth of 10%+.

Takeover update

The Independent Board Committee has responded to December’s unsolicited, indicative, conditional and non-binding proposal from Essity Aktiebolag to acquire all the shares in the company for $1.26 per share.

According to the release, after careful review, the committee considers that the proposal fundamentally undervalues Asaleo Care and is materially inadequate.

Asaleo Care’s Chairman, Harry Boon, commented: “The Independent Board Committee, after careful review, considers that the Proposal fundamentally undervalues Asaleo Care, is materially inadequate and does not reflect the strategic value of the company to Essity. However, the Committee remains open to further engagement.”

More reading

• Why the Doctor Care Anywhere (ASX:DOC) share price is shooting 6% higher
• Here’s why the Alcidion (ASX:ALC) share price is racing 7% higher today
• What to expect from the Telstra (ASX:TLS) first half result
• 3 reasons to sell a share
• Is Airbnb stock a buy now?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Doctor Care Anywhere Ltd (ASX: DOC) share price is on the move on Wednesday following the release of an update.

At the time of writing, the telehealth company’s shares are up 6% to $1.46.

How is Doctor Care Anywhere performing?

Doctor Care Anywhere was on form during the fourth quarter and revealed a 151% increase in revenue to 3.8 million pounds.

This led to the company’s unaudited full year revenue increasing 102% year on year to 11.6 million pounds.

This was driven by a 186% increase in the oddly named “Eligible Lives” metric to 2.2 million. This metric represents the total number of patients who have an entitlement to use its services.

Also growing strongly was the number of consultations via its platform. The company reported a 333% increase during the fourth quarter to 74,300. This was comfortably ahead of its guidance.

Pleasingly, its growth looks set to be given a boost in FY 2021 thanks to a recent channel agreement with Allianz Partners. This agreement will see the insurance giant embed Doctor Care Anywhere’s service into Allianz UK and European international private medical insurance policies from 1 January 2021.

At the end of the period, the company was in a strong financial position with cash of 38.4 million pounds.

Management commentary

Doctor Care Anywhere’s CEO, Bayju Thakar, commented: “We continue to see robust growth in consultation volumes across all channel partners, as new and existing patients become accustomed to adopting digital healthcare into their everyday lives.”

“Consultations have grown over 300% on the prior corresponding period and this demand has helped deliver positive financial outcomes for DOC while demonstrating that we are providing a much-needed service to patients across the UK and Ireland.”

The CEO notes that the COVID-19 pandemic has helped drive the digitisation of the healthcare industry, which has been supportive of its growth.

He explained: “During the last 12 months we’ve seen a structural shift in the way in which patients seek to be treated. The COVID-19 pandemic has placed massive strain on healthcare systems globally, accelerating the adoption curve of telehealth as patients and clinicians become increasingly comfortable using technology to access convenient, cost effective and world class healthcare.”

“We look forward to continuing to execute on our growth strategy to become a leader in digital health globally by providing the best healthcare service to our patients, with clinical excellence at its core,” he concluded.

More reading

• Why the Doctor Care Anywhere (ASX:DOC) share price surged to a record high
• 2 newly listed ASX shares to watch in 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Alcidion Group Ltd (ASX: ALC) share price is racing higher today following the release of its second quarter update.

In early trade, the healthcare technology company’s shares are up 7% to 22.5 cents.

How did Alcidion perform in the second quarter?

For the three months ended 31 December, Alcidion added $12.6 million of revenue. This was up 163% on the first quarter and 260% on the prior corresponding period.

In light of this, with six months still remaining in the financial year, the company has revenue of $21.7 million that is able to be recognised in FY 2021. This is already 17% higher than the entire revenue the company generated in the whole of FY 2020.

In addition to this, management notes that a further $23 million of sold revenue is to be recognised out to FY 2026.

One of the key drivers of this revenue growth has been an $11.3 million five-year deal with South Tees Hospitals NHS Foundation Trust. This deal was signed during the second quarter and is for Alcidion’s full suite of products and services. This includes Miya Precision and Better’s OPENeP.

At the end of the quarter the company had a cash balance of $12.5 million. Though, this has been boosted since then by the receipt of a $3 million payment in January relating to the South Tees contract.

“Significant quarter of sales”

Alcidion’s Managing Director, Kate Quirke, was delighted with the company’s performance in the second quarter.

She said: “Building on an already strong start to the financial year, I am delighted to present a significant quarter of sales that was one of Alcidion’s best to-date. Our milestone contract and extension with South Tees NHS Trust is an important validation of our market-leading value proposition and full service approach in the UK, supporting the NHS’ digital transformation.”

“We have made further headway in the UK in Q2 with our Miya Precision products continuing to gain traction with existing and potential customers, along with our ability to resell NextGate solutions as part of our portfolio of reseller products in the UK and Ireland.”

Looking ahead, Quirke believes the company is well-positioned to build on its strong second quarter performance.

She commented: “We have entered the second half of FY2021 in an advantageous position and look forward to building on the sales momentum of the first half. While we are carefully monitoring the COVID-19 situation in all markets – particularly the UK – we remain confident that with hospital protocols now in place at NHS hospitals, health IT procurement will continue close to normal. Furthermore, the situation continues to present an opportunity for Alcidion to implement our smart health IT solutions and drive a new standard of better, more efficient and safer care.”

More reading

• Why the Asaleo Care (ASX:AHY) share price is dropping lower today
• Why the Doctor Care Anywhere (ASX:DOC) share price is shooting 6% higher
• What to expect from the Telstra (ASX:TLS) first half result
• 3 reasons to sell a share
• Is Airbnb stock a buy now?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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With earnings season on the horizon, I thought I would take a look at what is expected from some of Australia’s most popular companies.

On this occasion, I’m going to take a look at telco giant Telstra Corporation Ltd (ASX: TLS).

What is expected from Telstra in the first half of FY 2021?

According to a note out of Goldman Sachs, it believes 2021 will be a pivotal year for the ANZ telecom sector.

It notes that mobile revenue and earnings growth are set to return in the second half, supported by ongoing rationality. It is expecting further price rises from Optus by July.

In addition, following the completion of the NBN in December, Goldman believes industry fixed earnings will begin to stabilise late in the year.

The broker expects the improving fixed and mobile earnings’ outlook to drive a re-rating in the sector and support shareholder returns. This will be supplemented by an attractive dividend yield, with further upside potential through asset sales such as Telstra’s TowerCo.

In respect to its half year update, Goldman Sachs is expecting Telstra to report an 8% decline in revenue to $12,318 million.

Things will be a little softer on the earnings front. The broker is forecasting a 15% decline in earnings before interest, tax, depreciation and amortisation (EBITDA) to $3,971 million and a 26% reduction in net profit after tax to $941 million.

From this, its analysts are expecting Telstra to pay out an 8 cents per share fully franked dividend.

What about the full year?

Goldman will also have its eyes on its guidance for the full year.

At present, the broker is estimating headline EBITDA of $7,672 million versus guidance of $7,200 million to $8,000 million. This compares to the consensus estimate of $7,655 million.

It is also forecasting underlying EBITDA of A$6,809 million versus guidance of $6,500 million to $7,000 million and capex (excluding spectrum) of $2,947 million versus guidance of $2,800 million to $3,200 million.

Finally, a 16 cents per share fully franked dividend is expected for FY 2021. Based on the latest Telstra share price, this represents a 5% dividend yield.

Goldman Sachs has a buy rating and $3.80 price target on the company’s shares.

More reading

• 2 cheap ASX shares to buy today
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• Experts want Big Tech to stop the spread of COVID-19 misinformation
• ASX 200 Weekly Wrap: Change in America spurs ASX 200 higher
• 2 blue chip ASX dividend shares to buy next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you have money to invest, it’s never been easier to buy shares.

Compared to years gone by, we have so much information about public companies available free via the internet.

It was only a couple of decades ago that potential investors had to pay a fee to get hard copy books of company financials delivered to them.

And with smartphone apps lowering the cost and minimum transaction thresholds, pretty much anyone can join the market now.

But selling is a much more difficult proposition. It always has been, and remains so.

How do you know when to sell a stock? Do you sell when it has returned a certain percentage? Do you sell if the price goes down, to save yourself from further losses?

SG Hiscock portfolio manager Hamish Tadgell this week gave some advice on selling for The Motley Fool readers. 

His fund is a high conviction fund, which means it goes hard on a small set of companies it really believes in. So saying goodbye to one is a massive decision.

Tadgell has 3 criteria that are triggers to sell:

Can risk-return improve?

Risk-return is the quantification of the old investment axiom that dictates higher potential returns await those who are willing to put up with more risk.

If a company has become more risky without the returns proportionally rising, or its returns deteriorate, it might time to rethink its risk-return. Is it better or worse than when you bought it?

“That often comes down to a valuation argument, or it might be that there’s a better competing idea to put in the portfolio,” said Tadgell.

Impairment of earnings power

Whether it’s due to an internal or external shock, it could be time to sell if a company’s ability to rake in earnings is impaired.

“Has there been a loss of competitive position or a decline in the earnings predictability for some reason?” Tadgell said.

“Or a regulatory change or something like that, which is impairing the potential earnings power?”

An example might be computer chip maker Intel Corporation (NASDAQ: INTC). For many decades it dominated the world with both PC and Apple Inc (NASDAQ: AAPL) computers using its processors.

Then smartphones rose to prominence 14 years ago, allowing smaller rivals like Advanced Micro Devices Inc (NASDAQ: AMD) and NVIDIA Corporation (NASDAQ: NVDA) to gain a new edge. 

Intel was slow to realise the power of mobile computing and even lost the Apple account in recent years.

“AMD is a lot smaller and more nimbler, and the share price has been on a tear,” Nucleus Wealth head of investments Damien Klassen told The Motley Fool in November. 

“Whereas the Intel price has been going in the opposite direction.”

Loss of confidence in leadership

Getting blindsided by a company decision can turn the stomachs of many shareholders.

Public companies by definition are supposed to be transparent, so a rude surprise would have to raise the question of selling.

“Have we lost confidence in management’s ability to build value?” asked Tadgell.

“Management change or if management does something which is out of character with their strategy or that they’ve suggested to us they’ll do — then that will change us to consider selling.”

More reading

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• Amazon’s ad business will dominate the 2020s
• Does Netflix have a competitive advantage?
• Why Tesla (NASDAQ:TSLA) shares were last year’s worst short bet
• Here are the US shares ASX investors are buying

Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and NVIDIA. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Intel. The Motley Fool Australia has recommended Apple and NVIDIA. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Share prices of Airbnb Inc (NASDAQ: ABNB) have taken off since the company’s initial public offering (IPO) on 10 December. Despite listing at a tumultuous time for the travel industry, Airbnb’s shares currently trade at $180.40 — more than double its IPO price of $68 a share. At $108.44 billion, Airbnb’s market capitalisation has already eclipsed the combined valuations of rivals Booking Holdings Inc (NASDAQ: BKNG) and Expedia Group Inc (NASDAQ: EXPE).

Investors who missed the rally may wonder if they should chase up Airbnb’s soaring stock price. But first, they need to understand why Airbnb is getting so much love. 

Airbnb has a highly scalable and resilient business model

Alongside Uber, Airbnb is seen as the poster child of the sharing economy. It runs a software platform connecting hosts (people who own homes) and users (those looking to stay in a particular area). This highly capital-efficient business model is one of its biggest merits.

By turning unused bedrooms into an alternative to hotel accommodations, Airbnb has made travel a less expensive affair. In the process, it has also unlocked a valuable source of extra income for homeowners. Since Airbnb was founded in 2008, hosts have earned over $110 billion through the platform.

The scalability of Airbnb’s business model has helped revenue grow from $919 million in 2015 to $4.8 billion in 2019, an over fourfold increase.

Along the way, the company has become a sort of legend among start-ups. After scoring seed funding from Y Combinator in 2009, Airbnb raised capital from a Who’s Who list of venture capitalists including Sequoia Capital, Kleiner Perkins Caufield & Byers, and Andreessen Horowitz.

At the time, Airbnb’s potential upside was obvious. But investors knew little about how well it would survive black swan, economy-crushing situations such as a pandemic. Then COVID-19 hit.

Lockdowns killed off long-distance travel, and Zoom Video Communications calls took over face-to-face business meetings. For many investors, this might have sounded the death knell for airlines and other travel industry players. Shares of Airbnb rivals Expedia and Booking Holdings dropped to multi-year lows.

By April 2020, Airbnb’s bookings had slumped 72% year on year. It was forced to slash a quarter of its workforce, and raise emergency funding. But bookings have since recovered to 70% of pre-COVID levels. How has this happened?

While COVID-19 shut down international travel, many have kept moving within national borders. People just don’t like to stay home, but they don’t want to be in crowded hotel lobbies either. 

Furthermore, a new Airbnb use case emerged as people began combining work-from-home and travel, resulting in longer stays. According to a report in The Economist, the average length of an Airbnb stay in June 2020 was a week, nearly double what it was pre-COVID. The share of domestic reservations also more than doubled to over 80%, while stays less than 200 miles from home generated 56% of bookings, up from 33%.

All this has proved the resiliency and flexibility of Airbnb’s business model — even in the face of wild demand fluctuations.

Seizing a multi-trillion dollar market opportunity

Airbnb is a very recognizable brand in the global travel industry, where it estimates its total addressable market is worth $3.4 trillion. In 2019, the company recorded $38 billion in gross booking value — just 1% of this market opportunity.

To expand its business, Airbnb is slowly transforming from a bed-and-breakfast provider into a global travel marketplace working with airlines, hotels, and tour guides. 

There are good reasons to believe Airbnb can keep growing, thanks to its massive global scale. This includes 4 million hosts who’ve placed over 5 million listings across 220 countries and regions. This huge selection naturally attracts and retains users, which in turn draws more hosts onto the platform. This network effect will drive a rising number of users, hosts, and listings toward Airbnb, sustaining its long-term growth — while reducing the amount it needs to spend on marketing.

Despite the strengths of Airbnb’s business model, there are risks investors shouldn’t ignore. For instance, Airbnb still faces the threat of a prolonged COVID-19 pandemic. While vaccines are now available, cases remain high and are on a rising trend. That means international travel is still severely restricted.

In coming years, Airbnb will increasingly go head-to-head with industry bigwigs like Booking.com, Tripadvisor, and Expedia. Meanwhile, companies like Hostfully are giving hosts a way to manage listings across multiple platforms.

All this could prevent Airbnb from turning profitable anytime soon as it plows cash into retaining users and attracting new ones. The company has never had a full year of profitability.

Promising prospects, but a sky-high valuation

By now, it’s quite obvious Airbnb is a wonderful business that’s poised to grow over the long term — post-COVID-19, of course. Given its explosive potential, Airbnb was never going to trade at a cheap valuation. 

But at $180 a share, Airbnb trades at 30 times its trailing 12-month revenue. That’s jaw-dropping, considering Facebook — the biggest social media company in the world — trades at barely half that multiple.

Rational investors will look for a good entry point promising adequate returns, and some margin of safety. Right now, they are better off not hitting the road with Airbnb stock.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Will the ASX see a share market bubble in 2021?

Lawrence Nga has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Booking Holdings, Facebook, TripAdvisor, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Airbnb, Inc. and Uber Technologies. The Motley Fool Australia has recommended Booking Holdings, Facebook, TripAdvisor, and Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Is Airbnb stock a buy now? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Wesfarmers Ltd (ASX: WES) share price climbed 1.7% on Monday to start the week at a new record high.

Shares in the Aussie conglomerate closed the day at $54.34 per share, just shy of the $54.48 all-time high set during Monday’s session.

Why is the Wesfarmers share price climbing higher?

The S&P/ASX 200 Index (ASX: XJO) had a solid start to the week, climbing 0.4% higher to a new 11-month high. The benchmark Aussie index closed the day at 6,824.70 points. That’s its highest level since the start of the coronavirus-induced bear market in late February 2020.

The Wesfarmers share price was one of those ASX 200 shares propelling the index higher. Monday’s gains came as Australia’s medical regulator approved the first COVID-19 vaccine for use in Australia.

Wesfarmers is a conglomerate, meaning it owns and operates many companies across different sectors. These include businesses in the mining, gas, retail and insurance sectors.

The vaccine news on Monday saw many ASX shares edge higher. The Wesfarmers share price gained 1.7% to finish the day at $54.34 on the back of Monday’s investor optimism.

This means the Aussie conglomerate now boasts a market capitalisation of $61.6 billion. Wesfarmers shares are trading at a price-to-earnings (P/E) ratio of 37.9 with a 2.8% dividend yield.

What else happened on the ASX on Monday?

Despite the S&P/ASX 200 Index climbing higher on Monday, it wasn’t all good news for investors.

The suspension of the Australia-New Zealand travel bubble saw ASX travel shares stumble on Monday afternoon. The discovery of the highly infectious South African strain of COVID-19 in New Zealand prompted a temporary change to the quarantine-free travel arrangement.

So, while Wesfarmers shares climbed higher to start off the week, ASX travel shares fell lower. These included the Webjet Limited (ASX: WEB) share price which closed 3.8% lower at $4.77 per share.

More reading

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• 2 ASX 200 shares to buy for dividends
• Will Joe Biden’s election help an Australia-China reset?
• These blue chip ASX shares just hit multi-year highs

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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