The highly anticipated Airbnb initial public offering (IPO) is scheduled this week on December 10, Thursday. On the same day, you can begin trading this hot stock with the ticker ABNB.US on SimpleFX!
Airbnb is one of the top providers of home-sharing and rental services around the globe. It’s an online home rental marketplace where property owners or hosts can rent out their place and guests can book these properties via the Airbnb website or mobile app.
Closing in on the IPO date, the Wall Street Journal reported that Airbnb will raise its IPO price range from $44–$50 each to $56–$60 per share. This is a 27% increase at the bottom end and a 20% increase at the top range, increasing the company’s stock market valuation to $42 billion. This should be an impressive feat if we look at its $18 billion valuation early this year due to the pandemic.
Despite the company’s aggressive $545 million sales and marketing budget cuts due to COVID-19, their profit in Q3 suggests a soft return to normal. Q3 is profitable due to the increased demand from summer vacationers. Even though the pandemic crushed its Q2 revenue by 72%, the end of Q3 quarter saw only a meek 18% fall in revenue and a profit of $219 million was gained.
Airbnb may face several trials more as we may yet to see the end of the pandemic. A further decline in demand may occur if COVID-19 cases increase in early 2021. The company would need to polish their crime and safety guidelines in line with public company regulations. Post-pandemic, the cleaning and maintenance costs may likely be higher. Lastly, the government could implement tax changes and zoning limitations on short-term rentals.
On another note, investors might choose to ignore those ordeals as revenue growth is expected to go back to normal once the pandemic ends. This can happen in the nearest future as coronavirus vaccines are on their way to the public. What will happen after Airbnb, an industry leader, goes public for the first time during this chaotic period?
Trade on Airbnb (ABNB.US) stocks and speculate on its price moves. No matter if the shares will rise or fall, go long or short to profit huge!