Airbnb Inc. shares surged over 100% Thursday in their opening trade on the Nasdaq.
Shares of the San Francisco-based online travel accommodations booking website opened at $146 after pricing at $68 on Wednesday evening. They were expected to price between $56 and $60 per share. Shares trade under the ticker ABNB.
The pricing raised $3.7 billion and gave Airbnb a $47 billion valuation on a diluted basis, making it the largest initial public offering of 2020. The post-IPO gains ran the company's market value to more than $100 billion. Quicken Loans parent, Rocket Cos., debuted in July at an almost $44 billion valuation.
Airbnb will now compete for investor funds with major hotel chains.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MAR | MARRIOTT INTERNATIONAL INC. | 131.77 | +1.30 | +1.00% |
| H | HYATT HOTELS | 74.64 | +0.84 | +1.15% |
| WH | WYNDHAM HOTELS & RESORTS | 58.83 | +0.55 | +0.94% |
Like hotels, Airbnb’s business was hit hard as stay-at-home orders aimed at slowing the spread of COVID-19 eliminated most nonessential travel.
The company reported April bookings fell by 72% from the year prior, resulting in more than 1,900 layoffs, or about 25% of its workforce.
Business rebounded as the economy reopened, with revenue down 19% year-over-year to $1.34 billion in the most recent quarter. The company reported a quarterly profit of $219 million.
https://www.foxbusiness.com/markets/initial-public-offering-airbnb-stock-market-debut
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