Strategic Wealth Partners chief strategist Nate Fisher, Bulltick Capital Markets chief strategist Kathryn Rooney Vera and Kaltbaum Capital Management President Gary Kaltbaum provide insight into IPOs, recent market rallies and investing strategies.
Airbnb Inc. shares surged over 100% Thursday in their opening trade on the Nasdaq.
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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 | 145.50 | n.a. | n.a.% |
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. | 131.07 | +0.60 | +0.46% |
| H | HYATT HOTELS | 73.53 | -0.27 | -0.37% |
| WH | WYNDHAM HOTELS & RESORTS | 58.35 | +0.07 | +0.12% |
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.
