Airbnb’s IPO Soared Over 100% In It’s First Day Trading
Airbnb’s long awaited IPO finally started trading on Thursday and the stock vaulted over 100% the first day it started trading! The new ticker is ABNB and the IPO priced at $68/share on Wednesday. The demand was so strong that the stock opened at $146 per share on its first day of trading on Thursday which allowed it to soar over 100% on it’s debut.
It’s encouraging to see the travel stock do well even as other travel stocks have been hit hard in 2020 due to Covid-19. The timing of the IPO worked out well because they waited until a vaccine was announced before going public. Remember, the market is a forward-looking mechanism and it is pricing in better times in the future.
The company is a popular option for travelers because you can stay at someone’s home when you travel and that means you don’t have to interact with other people. The other option is to stay in a hotel but that means you will have to be in close proximity to other people.
The company lost money in the first part of the year but managed to earn 36 cents per share in Q3 2020 on $1.3 billion in revenue. That is very encouraging and a sign that travel is coming back to life as we get one step closer to moving back to “normal.” We’ll see what happens going forward but Thursday was a “good” day for shareholders.
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