- Airbnb climbed 115% when its stock market debut opened on Thursday, giving the peer-to-peer hosting service a market valuation of more than $ 100 billion.
- The company raised $ 3.5 billion in funds when it went public at $ 68 per share, giving it an initial market valuation of $ 47 billion.
- An IPO frenzy quickly materialized in the fourth quarter of 2020, given the boom in recent trading debuts of DoorDash and C3.ai.
- Watch Airbnb commerce live here.
Airbnb climbed 115% when its stock market debut opened on Thursday, giving the home sharing service a market valuation of over $ 100 billion.
The stock opened at $ 146 and hit an intraday high of $ 165, representing a 143% gain from its initial public offering price of $ 68.
This makes Airbnb more valuable than the seven largest US hotel chains combined, including Marriott, Hilton and Hyatt. Marriott International is worth $ 41 billion, Hilton Worldwide is worth $ 29 billion, and Hyatt is worth $ 7 billion.
The smaller hotels, Choice Hotels, Wyndham Hotels and Wyndham Destinations, are each worth $ 5 billion. Extended Stay is worth just under $ 3 billion.
Airbnb valued its IPO at $ 68 per share, raising $ 3.5 billion in revenue for a valuation of $ 47 billion. This contrasts sharply with the company’s last fundraising as a private company in April, when the company raised $ 1 billion for a valuation of $ 18 billion.
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The company was valued at $ 31 billion in a 2017 private funding round. The sharp reduction in Airbnb’s valuation in April occurred amid a pandemic that has temporarily sidelined much of its business as home orders swept across the country.
But the company quickly rebounded, as travelers wanted little interaction with people while traveling and flocked to private residences on Airbnb for hotel stays that required interactions with workers and other tourists.
The 2020 IPO frenzy was not limited to Airbnb. On Wednesday, DoorDash and C3.ai saw substantial gains of 86% and 174%, respectively. And in September, Snowflake had the biggest software technology IPO in history and has been in tears since its debut.
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