One of the most anticipated IPO`s lately has been Airbnb. Airbnb, Inc. is an American vacation rental online marketplace company based in San Francisco, California, United States. Airbnb`s Revenue in 2019 reached $4.7 billion and it was getting ready for an initial public offering that would have been one of the most hyped ones in years.
However pandemic and lockdown hit Airbnb hard. Since travel and tourism has been restricted Airbnb`s revenues plummeted 72% since last year. Because of this Airbnb had to adapt to the new reality and slash many costs to stay afloat.
Airbnb has resisted the pandemic and was able to stay in the business. It even managed to rebound a little by little in the second quarter by the rise of domestic travel.
Airbnb is expected to raise around $3 billion during the IPO. It will be trading under the name ABNB. The company has strong fundamentals and many institutional investors are investing in the company, some of them include Sequoia Capital, Silver Lake, Sixth Street, Accel, DST Global, Founders Fund … ETC.
Since Airbnb’s bookings and revenue have not reached pre-pandemic levels it means that its shares will be trading at a discount in the beginning. However, the pandemic is going to get under control soon and people who have been locked in homes for a whole year will be eager to travel, maybe even more than before. We are expecting a stable but huge rise in the ABNB price as things get back to normal.
If you would like to get detailed information regarding Airbnb IPO here is the Initial public offering filling.
Don’t miss out on this promising IPO, it can be blessing in disguise for investors who cash in yearly.
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