The accommodation platform’s shares reached a price of $ 155.81, up 128.69% from the $ 68 it was initially priced at.
Free book preview Money-wise solo preneur
This book gives you the essential guide to easy-to-understand tips and strategies for achieving greater financial success.
December 13, 2020 3 min read
This article was translated from our Spanish edition using AI technologies. Errors can occur due to this process.
Airbnb’s listing on the stock exchange far exceeded expectations. The platform for individual placement saw its shares increase in value by 128.69%, reaching a price of $ 155.81. Now the company is more valuable than the seven largest hotel chains in the US combined. It even outperformed Uber and the Inditex group.
On December 10th, Airbnb started trading on Wall Street. They originally planned to sell their shares at a price between $ 44 and $ 55 per unit, which equates to a value between $ 31 and $ 38 billion.
Eventually, the initial price was set at $ 68 per share, but that price didn’t last long. The shares of the San Francisco-based company closed their first day on the Nasdaq in New York trading at $ 144.71, an increase of 112.8%, to a capitalization of nearly $ 86.5 billion, more than twice as much as expected the day before. This puts Airbnb a bit above the hotel reservation giant Booking.
Welcome @Airbnb. #NasdaqListed pic.twitter.com/eVIHCNfy4S
– Nasdaq (@Nasdaq) December 11, 2020
Within a few days, the platform’s shares hit USD 155.81, an increase of 128.69% over the IPO. Airbnb closed with a final valuation of more than $ 100,000 million, according to Bloomberg.
It is now more valuable than the seven largest hotel chains in America combined. For example, Marriott is valued at around $ 41 billion. Hilton, about $ 29 billion and Hyatt another $ 7 billion. It also outperformed Uber and Grupo Inditex’s market cap.
This is the biggest debut hit since May 2019, when Beyond Meat went public, up 163%.
See Also: See Why Jeff Bezos Will Grow His Net Worth With The Arrival Of Airbnb On Wall Street
To celebrate its entry into the stock market, Airbnb released an emotional video in which users were thanked and invited to symbolically ring the doorbell on Wall Street with the company.