Airbnb soars over 100% in opening Nasdaq trade
The stock opened at $146
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.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ABNB | AIRBNB INC. | 156.61 | +1.60 | +1.03% |
IPO FLOODGATES OPEN AS AIRBNB, DOORDASH PREP STOCK-MARKET DEBUTS
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. | 237.41 | +1.41 | +0.60% |
| H | HYATT HOTELS CORP. | 146.58 | +0.21 | +0.14% |
| WH | WYNDHAM HOTELS & RESORTS | 69.91 | -0.01 | -0.01% |
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.