Watch Airbnb And Intel/Qualcomm As Export Blocks Mount

On Wednesday, Intel (INTC) and Qualcomm (QCOM) both confirmed that the U.S. government lost its export licenses. The chip suppliers may no longer supply chips to Chinese telecom firm Huawei.

INTC stock dropped by 2.22% on Wed and closed at $30.00.

The Biden administration will expand its plans to protect the U.S. from China and Russia next. Reuters reported that the Commerce Department may restrict the export of proprietary or closed-source AI models. This would hurt Chinese firms like Baidu (BIDU) and Alibaba (BABA). It would benefit American firms like Microsoft (MSFT), which is backing OpenAI, and Alphabet (GOOG). Meta (META) indirectly benefits because it increases the value of its AI platform.

Watch Airbnb (ABNB)

In other news, watch out for a sell-off in shares of Airbnb today. The stock may trade 8% lower today after the firm posted a $0.41 GAAP EPS in Q1. Markets are unhappy that the Nights and Experiences unit booked a 9.5% increase to 132.6 million Y/Y. The outlook is weak, too. In Q2/2024, Airbnb expects a flat adjusted EBITDA growth. However, it will fall on an adjusted EBITDA margin measure Y/Y.

ABNB stock is too expensive. Its 10% growth does not justify the 31.5 times forward price-to-earnings ratio.

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