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Summary
- Airbnb lists on NASDAQ stock market on 10 December 2020
- Listed at USD 68 apiece, the stocks commenced trading at USD 146 per share and reached an intra-day high of USD 165 on 10 December.
- Airbnb's shares are trading with symbol 'ABNB'.
It was a smashing debut for the much-awaited Airbnb IPO. On the first day of its listing, the stock price got more than doubled. The overwhelming response the share received on debut gave the impression that it was an end to Airbnb’s difficult phase, after travel industry came to a standstill due to the coronavirus pandemic. The shares started trading at USD 146 per share and reached an intra-day high of USD 165 on 10 December.
On 09 December 2020, the home-sharing company, Airbnb had priced its shares at USD 68 apiece. The offering values Airbnb at USD 47 billion on a fully-diluted basis. The pricing was above than the earlier given range of USD 56 to USD 60.
Starting from 10 December 2020, the company's share is trading at the NASDAQ Stock Market under the symbol 'ABNB'.
The Airbnb IPO followed the previous day’s blockbuster debut of DoorDash, which witnessed its shares going up by 86%.
Must read: DoorDash (NYSE:DASH) makes a smashing debut, shares soar ~86% on day one
©Kalkine Group 2020
Airbnb incurred revenue loss due to COVID-19 impact on business
Airbnb's revenue for nine months ended on 30 September 2020 stood at nearly USD 2.5 billion, representing a decline of 32% year-on-year. The company has incurred a loss of USD 696.9 million and recorded an adjusted EBIDTA of USD 230.2 million in the 9-month phase that ended on 30 September 2020.
The decline in revenue is due to the unprecedented COVID-19 crisis that hit the world in 2019-end and affected the global travel and tourism sector, which got halted due to the lockdown and travel-related restrictions. As per the U.S. Travel Association data, since the onset of the pandemic in March, the U.S. travel economy has lost an estimated USD 481 billion.
The pandemic is expected to have a continuous impact on various aspects of business, financial conditions and operations of Airbnb. The fourth quarter witnessed a decrease in bookings due to another wave of COVID-19 infections. The total impact will entirely depend on future developments related to the pandemic and how the economy will react to these circumstances.
The revenue growth of the company has reduced, and how it performs in the future entirely depends on several macro factors and competition levels.
Do check: Airbnb files for Initial Public Offering - Airbnb IPO
