Airbnb shares jumped more than 112 percent on the first day of its IPO Thursday, becoming the latest technology stock to soar on its first day of trading so far this year.
Airbnb, which is traded on Nasdaq under the ticker symbol “ABNB,” originally priced its IPO at $68 per share, but opened up sharply at $146 on Thursday afternoon, according to reports. The company now has a market capitalization of about $86.5 billion, more than twice the valuation it sought in its IPO a day earlier.
Airbnb
That puts Airbnb’s market capitalization ahead of travel giant Booking, which is valued at more than $86 billion. In addition, Airbnb’s market cap also far exceeds that of hotel chains like Marriott and Hilton, which have market caps of more than $42 billion and $29 billion, respectively.
image.png
Airbnb ranks 10th among the best initial public offerings of 2020, based on the price increase of its IPO.
Airbnb reported net income of $219 million on revenue of $1.34 billion in the third quarter, according to the data. That revenue was down nearly 19 percent from $1.65 billion a year earlier. Despite the primarily net loss, the company also had other profitable quarters, including the second and third quarters of 2018 and the third quarter of 2019.
For the full year 2019, the company reported a net loss of $674 million on revenue of $4.81 billion. so far in 2020, the company has reported a net loss of nearly $697 million on revenue of $2.52 billion.
Airbnb CEO Brian Chesky said in an interview before the IPO that the platform is considering changing the way travelers plan their trips, as telecommuting is possible for many people. He also said he wasn’t too worried about the valuation.
As part of its initial public offering (IPO), Airbnb created an endowment fund for hosts that includes 9.2 million non-voting shares. airbnb said in its IPO prospectus that the fund will benefit hosts through programs and grants.
Recent Comments