Original source: CNBC Disruptor| Author: Lauren Feiner

Airbnb skyrockets 112% in public market debut, giving it a market cap of $86.5 billion

Airbnb shares ended the day up more than 112% in its IPO debut Thursday, the latest tech stock to show monster gains in its first day of trading this year.

Shares of Airbnb originally priced at $68 Wednesday night, but showed a massive pop Thursday afternoon when it opened trading at $146 per share. Shares closed the day at $144.71, giving the home-sharing company a market cap of about $86.5 billion, more than double the valuation it sought in the IPO just a day ago.

That puts Airbnb past the market cap of travel giant Booking, which has a valuation of more than $86 billion. Competitor Expedia has a market cap of more than $18 billion. 

Its market cap far surpasses hotel chains as well, such as Marriott and Hilton, which hold market caps of more than $42 billion and $29 billion, respectively. Delta Air Lines has a market value of about $30 billion. 

The first-day surge made Airbnb the 10th best debut in 2020 based on price gain from its IPO.

Airbnb trades under the ticker “ABNB” on the Nasdaq.

Speculation that it would join one of the major indexes in the next couple years seems to be driving interest, a well-placed source told CNBC’s Leslie Picker.

The company is going public at a time when the sector has been battered by reduced-travel trends during the public health crisis. Its revenue shrank nearly 19% last quarter to $1.34 billion compared with the same period a year prior. But it still managed to turn a profit of $219 million and has had other intermittent quarters of profitability.

While travel has been lower, Airbnb managed to hit a sweet spot for those willing to venture out who preferred home stays over traditional hotels. That could change when vaccines make more widespread travel more accessible again, possibly as soon as late next year.