Benzinga | Nov 30, 2021 04:56PM EST

Why Airbnb Shares Are Dropping Today

Shares of travel, resort and reopening stocks, including Airbnb Inc (NASDAQ:ABNB), are trading lower Tuesday amid continued uncertainty surrounding the COVID-19 omicron variant.

A new strain of the coronavirus was detected in South Africa last week. Known as the omicron variant, the coronavirus strain has more than 30 mutations on the spike protein that binds to human cells. To put that in perspective, other variants have less than 20 mutations. The mutations suggest higher transmission rates and potentially reduced antibody protection.

Health officials have now detected the omicron variant in more than a dozen countries across at least five continents.

The World Health Organization (WHO) on Monday said omicron is likely to spread internationally and poses a very high risk of infection that may potentially have "severe consequences."

"The impact on vulnerable populations would be substantial, particularly in countries with low vaccination coverage," according to the WHO.

Further research is required to assess omicron's potential to resist vaccines and immunity induced by previous infections.

From Last Week: Airbnb Whale Trades Spotted

Airbnb is the world's largest online alternative accommodation travel agency, also offering booking services for boutique hotels and experiences.

ABNB Price Action: Airbnb has traded as high as $219.94 and as low as $121.50 over a 52-week period.

The stock was down 4.01% at $172.85 at time of publication.

Photo: congerdesign from Pixabay.