We reported about Airbnb’s stock exchange listing 4 days ago. Shares of Airbnb rose sharply by 135% shortly after its public debut, which rocketed the company’s market valuation above $ 100 billion after the initial public offering.
The company valued its IPO at $ 68 per share. But on Thursday, the stock opened at $ 148 on the Nasdaq and then shot up to $ 160.
“In March and April, I didn’t think it would be possible to go public this year,” said Nathan Blecharczyk, co-founder and chief strategic officer of Airbnb. “But I think this pandemic has shown how resilient Airbnb’s business is.”
Airbnb plans to use the money raised to help expand its rental homes, apartments and Experiences business, where passengers connect with locals to do things like attend a cooking class, learn to surf or go sightseeing. Prior to the pandemic, the company considered expanding into other areas of travel, such as helping passengers with transportation and what to do after their arrival. Blecharczyk said it was still a long-term goal, but the company shifted its focus to its primary services.
The Airbnb IPO comes during very hard year for tourism. In the midst of the pandemic, the company’s growth slowed and the coronavirus pandemic triggered huge shocks, which caused some people to doubt whether the company could survive.
The IPO also comes the day after the DoorDash food delivery service grew by more than 80% during its debut on the New York Stock Exchange. On Wednesday, DoorDash shares fell 7% in midday trading.
But while DoorDash saw a huge increase in customers during the pandemic, Airbnb’s story was quite the opposite. During the second quarter, the culmination of the pandemic, Airbnb’s sales fell 72% year-over-year to $ 334.78 million, while losses rose to $ 575.6 million.
After several cost-cutting measures, including layoffs of 2,000 employees, reduced marketing costs and lower executive salaries, the company began to recover somewhat in May. Airbnb reported a profit of $ 219.3 million in the third quarter, for which it is grateful to customers who have booked accommodation for local travel and remote work.
Looking to the future, Airbnb said it would explore how to take advantage of the growing trend of local travel and remote work. Blecharczyk called it a “phenomenon” and said that the company plans to emphasize more experiences and local stays in its application.
“This is something we want to explore in more detail,” Blecharczyk said. “To enable people to use Airbnb not only on the road, but also in everyday life.”