Airbnb began trading at $146 a share on Thursday (Dec. 10) at more than two times the price set for its initial public offering (IPO) the previous day.
The home-sharing company, which trades with the “ABNB” ticker symbol on the Nasdaq, had an IPO price of $68 per share on a $47 billion valuation.
The initial target range put into place earlier this week was between $56 and $60 per share.
Airbnb’s blockbuster IPO comes just a day after shares of DoorDash began trading at $182 on the New York Stock Exchange. The food delivery platform had priced its stock at $102 per share on Tuesday night (Dec. 8).
Brian Chesky, the CEO of Airbnb, told CNBC before the company’s IPO that Airbnb was mulling the changes in how consumers are arranging their journeys at a time when telecommuting is possible for a number of people.
“We’re all obviously on Zoom, and so people are saying, ‘I want to go anywhere 300 miles around me, what can you show me?’” Chesky told the news outlet. “Now we’re going to be getting a little bit more into the game of inspiration and matching people to the perfect home experience for them.”
Airbnb has been able to enjoy a sweet spot with people who are inclined to travel and have a preference for staying in homes instead of hotels, although that trend might not hold once vaccines make broader travel accessible again, CNBC reported.
Airbnb wrote in a recent filing that the firm has only captured a small slice of what it views as a $3.4 trillion total addressable market.
In its S-1 filing with the U.S. Securities and Exchange Commission, the firm wrote, “We believe that the COVID-19 pandemic reinforced that travel is an enduring human desire, even in the face of challenges. People have increasingly sought travel options closer to home during COVID-19, and Airbnb’s offerings are well-suited to adapt to this changing dynamic
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