Are you looking to buy Airbnb stock? Well, you’re in luck. In December of 2020, they decided to go public. They’ve steadily become a great stock to watch as travel has opened back up. Many neat and unusual places use Airbnb as a booking option.
With over 7 million unique rental listings in over 220 countries, Airbnb’s global reach is vast. And their reach continues as they expand into some of the world’s biggest cities. For example, they were used in England, Birmingham, and Mexico City.
Airbnb Stock (ABNB) Stock Introduction
Airbnb went public at the end of 2020. So you can buy their stock on any exchange under the stock symbol $ABNB. Like any newer stock, they’ve gone through their ups and downs since debuting on the market.
Airbnb was founded in August 2008 by Brian Chesky, Joe Gebbia, and Nate Blecharczyk.
Their motive was to create a house-sharing service that gave travelers cheaper accommodation. Furthermore, it allowed homeowners to make more money from their homes. To a large extent, and you would agree, it’s a win-win.
A significant selling feature of Airbnb is the amenities you can’t find at hotels – think inflatable hot tubs, electric car charging stations, bike racks, and a full kitchen/office, you get the point.
$ABNB Traveler Options
Curious to know what it’s like to stay in a tent? What about a castle? Bamboo tent, anyone? Airbnb doesn’t discriminate; you’ll see listings that range from cozy homes to houses in trees.
Along with the same token, people love Airbnb because their rates are relatively cheap. Depending on your standards, you can stay in the U.S., U.K., and Athens for as low as $14 a night. Now, I can’t guarantee you won’t be sleeping on an air mattress, but it beats $300 a night.
I am a user and a fan of Airbnb. Likewise, my most recent use was last fall in Austin for the Austin City Limits concert. Even though our host was present at the house during our stay (that can happen if you don’t read the fine print), we had a blast.
Similarly, we enjoyed his company; the house was huge, new, and affordable! It was a win on both sides. Renting out condos and houses is very popular these days. Vacation rental cleaning services will also clean your place before renting it out again.
Airbnb Stock Fun Facts
- Some Top Hosts on Airbnb can make up to six figures per year
- The “air” in Airbnb was due to Brian Chesky and his roommates renting an air mattress on the living room floor
- On average, the price per night for reservations is between $120–$140 USD.
- The fastest-growing Airbnb hosts are seniors.
- Senior women over 60 years old are some of the best hosts on Airbnb.
- About 100,000+ guests stay in earth houses.
Two Ways to Buy Airbnb Stock
Other posts mention that some platforms allow investors to invest in pre-IPO companies. To put it another way, if an existing shareholder wants to sell some of their shares, they can do it via those marketplaces.
Usually, the stock price is the same as the one used in the latest investment round. For Airbnb, it’s about $125. In contrast, another possibility is to invest in a private equity fund that invests in companies like Airbnb in venture capital rounds. Both AngelList and EquityZen are funds that allow investors to diversify their investments in pre-IPO companies.
That’s all good, but these private equity funds typically require investors to be high-net-worth individuals.
Airbnb Profitable?
According to TechCrunch, in 2018, Airbnb had over $1 billion in revenue. Fast forward to Q1 of 2019, and their financials showed the company increased its booking value by 31%.
Reuters said this translated into a $9.4 billion increase compared to 2018. Predictions from Forbes pegged that by 2020, Airbnb’s profit could be around $8.5 billion.
But that’s no longer the case; Airbnb has a profit problem. According to the Wall Street Journal, this home rental giant posted a loss of $322 million in the first nine months of 2019.
Rewind to the same period in 2018, when they had a profit of $200 million. Fortunately, they managed to profit in the third quarter of 2019, albeit lower than Q3 of 2018.
Why Is Airbnb Stock Losing Money?
For a lot of reasons.
Airbnb has had some recent significant expenses due to safety concerns. Everything from prostitution, gun violence, and racism has eaten into Airbnb’s once-profitable bottom line.
An investigation by Vice revealed a nationwide scam by Airbnb hosts. When guests would show up, hosts would switch their housing at the last minute to inferior properties, claiming the ones they initially booked weren’t available.
To solve these issues, Airbnb committed $150 to various safety initiatives, including verifying its 7 million listings for accuracy. Furthermore, they created a 24/7 safety hotline and a “manual screening of high-risk reservations.
Secondly, Airbnb has made a few high-profile acquisitions. Recently, they acquired the hotel booking site HotelTonight and Urbandoor. Because of this, Airbnb is poised to gain a foothold as a full-fledged travel company rather than just a home-sharing service. Due to this, Airbnb is looking at a lot of red. Airbnb is one of the numerous tech companies hitting the public markets without being profitable – think Lyft.
However, all is not lost. It’s important to remember that just because they are outlying a lot of capital now, a company doesn’t mean the profits won’t continue. And in the case of Airbnb stock, I see this as a growing pain.
Airbnb Still Has Cash in the Bank
Since its inception and up until 2019, Airbnb has raised an astonishing $4.4 billion. Out of that $4.4 billion, they still had close to $3.5 billion in the bank.
Coupled with the fact that they raised $1 billion in their last round of funding, Airbnb’s cash reserves are extremely healthy.
Airbnb generates healthy amounts of cash flow. And once COVID-19 washes over us and travel resumes, Airbnb is a company poised to stand the test of time.
Final Thoughts: AIrbnb Stock
There is no telling what the Airbnb stock will continue to become as it continues to trade on major exchanges. But that’s no reason why you can’t get started trading now. And nothing is more important to us than giving you clarity during a time of so much chaos.
Frequently Asked Questions
Yes, Airbnb is a publicly traded stock on the Nasdaq stock exchange. You can find it listed under the ABNB ticker. Investors and traders can buy shares of ABNB through their preferred brokerage account.
Yes, NASDAQ does use Class A common stock for Airbnb (ABNB). ABNB is listed and traded on the NASDAQ stock exchange, specifically under the "NASDAQ: ABNB" ticker symbol. With a Class A common stock classification, it represents ownership in the company and typically carries voting rights and dividend entitlements.
There are mixed opinions on whether Airbnb stock (ABNB) is undervalued. Some believe that Airbnb stock is undervalued, citing two factors. Firstly, their low price-to-earnings ratio. Secondly, analysts believe that a percentage of its fair value undervalues the stock.
In 2023, Airbnb stock (ABNB) was on fire, rising over 70%. The stock experienced a significant increase due to a strong recovery of Airbnb's business performance. Furthermore, this upward trend in Airbnb's stock price was due to strong financial results driven by robust travel demand and disciplined cost management.
Supporters of Airbnb as a long-term investment often highlight the company's strong position in the sharing economy, its global brand recognition, and its potential for continued growth in the travel and accommodations sector. Supporters argue that as travel demand strengthens, Airbnb may offer substantial upside potential, especially considering its expansion plans and innovative business model.
More Frequently Asked Questions
Yes, NASDAQ does use Class A common stock for Airbnb (ABNB). ABNB is listed and traded on the NASDAQ stock exchange, specifically under the "NASDAQ: ABNB" ticker symbol. With a Class A common stock classification, it represents ownership in the company and typically carries voting rights and dividend entitlements.
According to MarketBeat, the consensus rating among 33 analysts for Airbnb's stock is Hold, with an average twelve-month price prediction of $139.52, a high price target of $185.00, and a low price target of $100.001. However, these price targets and ratings are subject to change based on various factors, including market conditions, company performance, and industry developments. On the flip side, Longforecast.com predicts a moderately bullish trend for Airbnb's stock in the coming years, with the average price forecast at $122 by the end of July 2024, indicating a 3.4% change from June 2024.
Jeff Bezos invested early in Airbnb in its Series B round in 2011. However, the specific amount of Bezos' investment in Airbnb has not been publicly disclosed. The round raised $112 million for Airbnb, with investments from various firms, including Andreessen Horowitz and General Catalyst.
Airbnb Inc has a volatility of 2.34 and is 3.0 times more volatile than NYSE Composite. Overall, 20 of all equities and portfolios are less risky than AirbnbInc.
