Our pick for beginner investors: Robinhood
- $0 commissions
- Download the app or trade online
- Start trading right away with instant deposits
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Updated . What changed?
Airbnb is ready to open the doors to public investors, but the stock may be a bigger risk than traders realize. Before you add this IPO to your watch list, consider how this company has handled its staff and its balance sheet during the coronavirus pandemic.
Monday, November 16: Airbnb’s S-1 filing is released to public shareholders, revealing the stock’s ticker symbol: ABNB.
Thursday, November 12: Bloomberg reports that Airbnb may pursue a dual listing on the Nasdaq and the Long-Term Stock Exchange: a new Silicon Valley exchange focused on environmental and social investing.
Tuesday, November 10: Airbnb’s public filing is expected to be delayed until next week. Reports suggest that the decision is related to the ongoing election coverage that could overshadow the filing.
Thursday, November 5: Airbnb is expected to make its SEC filing public next week.
Wednesday, August 19: Airbnb has confidentially filed to go public.
On August 19, 2020, Airbnb confidentially filed a draft registration statement for an IPO with the U.S. Securities and Exchange Commission (SEC). On November 16, 2020, it released its S-1 filing to the public.
Airbnb intends to go public on the Nasdaq under the ticker symbol ABNB. Helming the deal are Citigroup, Goldman Sachs and Morgan Stanley, among others. The vacation rental platform plans to raise $3 billion from its offering, potentially valuing the company above the $30 billion mark.
No news yet of how many shares will be available or at what price. But Airbnb did mention in its prospectus that it plans to set aside up to 9.2 million shares of non-voting stock for Airbnb hosts.
While there’s no set date yet for the IPO, it’s expected to price in December. Investors will need to keep their ears open for developing news around the filing and be prepared with a brokerage account if they plan to invest.
Perhaps more important than when Airbnb shares will go live is whether backing this vacation rental platform is a practical investment.
In 2019, Airbnb was valued at $35 billion. This year saw that figure sink to $18 billion. In fact, the Wall Street Journal reports that the company had to reach for a $1 billion loan in April 2020 from private investors to make up its shortfall. And in May 2020, Airbnb laid off 25% of its staff — nearly 2,000 employees — in an effort to cut costs and weather the economic downturn. Like many travel companies, it’s been heavily affected by COVID-19, and it’s too early to say what a recovery might look like, or when it could happen.
On the flip side, Airbnb’s popularity could help its stock market debut. It’s a household name and even speculation of an IPO launch has gotten heavy media coverage, with Bloomberg, the Wall Street Journal, CNN and countless others covering the announcement. That coverage could help the IPO gain interest.
Pre-pandemic, many investors would have jumped at the opportunity to claim a slice of the Airbnb pie. But its impossible to predict whether the platform’s popularity will be enough to help it overcome doubt cast by recent financial decisions. If you’re considering investing, it’s worth more research into the company’s financials before deciding if it’s worth the risk.
Once Airbnb goes public, you’ll need a brokerage account to invest. Consider opening a brokerage account today so you’re ready as soon as the stock hits the market.
Few companies have been unaffected by the coronavirus pandemic — and Airbnb’s financial reports prove that the vacation rental giant is no exception.
With the release of Airbnb’s public listing, we got a better look at its financials. For the nine months ended September 30, 2019, Airbnb reported $3.6 billion in revenue and a net loss of $322 million. For the nine months ended September 30, 2020, its revenue dropped to $2.5 billion and it reported a net loss of $696 million.
These financials show us that in 2020, Airbnb was hit with the same falling revenue and rising losses experienced by many in the travel industry. But prior to the pandemic, the company was growing. From 2018 to 2019, Airbnb saw revenue growth of 32% — from $3.7 billion to $4.8 billion. And 2020 hasn’t been a complete write-off for the company: Airbnb saw a profit of $219 million in Q3 2020 as domestic bookings began to rebound.
The bottom line? Investors should review the entirety of Airbnb’s financial performance to get an accurate picture of how the company has performed long-term.
Airbnb was founded in 2008 and is headquartered in San Francisco, California. Through its online platform, it connects hosts in over 191 countries with travelers seeking local accommodations. Travelers can search for places to stay by numerous filters and metrics, relying on listing details and the feedback of fellow travelers to narrow down their options.
Airbnb is not an accredited business with the Better Business Bureau (BBB), from which it receives an F rating for failing to respond to customer feedback. The company has racked up 2,111 complaints in the last 12 months and its lack of responsiveness has led to a BBB alert being placed on the company. The Better Business Bureau states that Airbnb’s unresponsiveness is due to company layoffs and that outstanding complaints may continue to go unanswered for the foreseeable future.
Airbnb’s poor reputation with the Better Business Bureau is echoed by its disappointing TrustScore of 1.6 out of 5 after 6,213 reviews on Trustpilot. Many negative reviews target Airbnb’s cancellation policy in response to COVID-19, with many guests worldwide failing to receive a refund for canceled trips following government-imposed travel restrictions.
As of August 12, 2020, Airbnb’s official policy on trip refunds states that bookings made after March 14, 2020 are not eligible for the company’s extenuating circumstances policy.
Check out our short video in which we break down what we know so far about Airbnb’s upcoming IPO and how you can buy shares.
Airbnb has a unique business model, so there aren’t any stocks that serve as a direct comparison. But it falls within the travel sector, which has seen a lot of fluctuation lately.Select a company to learn more about what they do and how their stock performs, including market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield. While this list includes a selection of the most well-known and popular stocks, it doesn't include every stock available.
To buy stock, you’ll need to open a brokerage account. Compare your options using the table below to find the best fit.
The 2020 IPO parade draws to a close as five big-name tech companies prepare to go public. Here are five IPOs to consider adding to your watchlist.
How to invest in Social Capital Hedosophia and the companies it acquires.
We sat in on Palantir’s earnings call to find out how the company is doing, what losses it’s facing and what you need to know about the new administration.
You can invest in the biggest high-end brands through fashion stocks. Learn more.
Risks and performance indicators to consider before you buy into a SPAC.
Features and fees to consider before you open an account with this trading platform.
This Chinese ride-hailing platform plans to premiere on the Hong Kong Stock Exchange. Here’s how US investors can prepare.
Benefits, drawbacks and features to consider before opening an EquityZen account.
What to consider before you invest in biotechnology companies.
Everything we know about the Big Hit Entertainment IPO, plus information on how to buy in.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.