![]() For a company whose growth rate is expected to slow to the mid 20s over the next few years, that is certainly up there. The company trades at around 21 times 2021 sales. Source: Airbnb Prospectus Airbnb's ValuationĪirbnb is not a cheap stock by any means. An additional 27.8 million shares will be unlocked on the second day after the company reports Q4 2020 earnings (likely early to mid Q1 2021), and finally, all remaining insider-held shares unlock on the second day after the company reports Q1 2021 results or the 121st day after Decem(approximately April 2021), whichever is later. 16.8 million shares were available to be sold by employees on the first day of trading, which has now passed. Of course, potential buyers should be aware of lock-up expiration on IPOs, as this can sometimes create selling pressure on high-flying shares. ![]() This increased the company's operating loss to nearly half a billion dollars in 2019, and now in 2020, the company will likely bring in an operating loss exceeding $1 billion. These losses were trending in the right direction up until 2019, when the company really increased product development and sales and marketing expenses. With the exception of 2018, Airbnb has operated at a loss every year since at least 2015. 2020 has seen a dip due to the COVID-19 global pandemic, but 2021 is expected to return to growth year over year, although revenue is still expected to come in below 2019's numbers. Source: Table created by author with data from Airbnb S-1 and estimates from Īirbnb has seen some pretty incredible growth over the years, growing revenue from $919 million in 2015 to $4.8 billion in 2019. Hosts can list their properties on the Airbnb site, receive payment, and rent their property out for days or even weeks all without ever even seeing the renter. Much like a hotel, but better, at least in my personal opinion. Given the stocks are still new to public market investors, I would expect high volatility to continue for quite some time.Īirbnb is a website and online platform that allows "hosts" to rent out spaces to temporary guests. Dash's IPO price came in at $102 per share and opened in the $180s, but has since fallen to the high $150s. The stock now trades near $165 as of the time of writing. Airbnb priced its IPO at $68 per share and instantly began trading in the $140s and $150s. Both companies are two of the most anticipated IPOs of the year in a market that has rewarded hot IPO stocks with huge stock price increases on day 1 and it was no different for these two. Airbnb ( ABNB) and DoorDash ( DASH) IPO'd a couple of weeks ago.
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