Airbnb skyrockets 112% in public market debut (IPO)

In this class: vocabulary regarding IPO | Stock Market | Business News.

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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.

Practice Your Writing

Have you ever rented a place or your place in AirBnB? If yes, how was your experience. If you haven’t, would you like to try it sometime? Why?

6 respostas para “Airbnb skyrockets 112% in public market debut (IPO)”

  1. No, I´ve never rented my place, or any other place using Airbnb, but I consider to using Airbnb services to rent an apartment, or a house if I have one available, because the business seems trustable and they have some rules to protect the host.

    1. Excellent sentence, Luiz.

      Very good writing.

      Just a quick grammar tip: when you use “consider” to mean to ponder as an option, it should be followed by “ing” but you don’t need to include “to”. You can simply write “I consider using AirBnB services”.

      Welcome to the platform!

    1. Hi Karla,

      We had to re-upload this article to fix a bug in comments section, so you will to click “Mark as Complete” again.
      Sorry for the inconvenience.

      Just a quick tip: I had read.

  2. Yes, I have already rented a place in AirBnB and had amazing experiences. The last time was on my vacations when I traveled with my family; we chose a nice apartment near the sea and had a good time. We didn’t meet the owner for any moment, everything was done by app. I love the easiness that the technology gives us.

    1. Hi Priscila,

      I’ve already had excellent experiences with AirBnB as well. I’ve lived in total more than a year in AirBnBs and it is really practical.

      Welcome to the platform and keep commenting 😉

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