Airbnb has not yet issued a public statement on the listing, so it is not clear why it is listing at this time. If earnings growth fails to materialise, share prices are likely to fall back to support more realistic price multiples.

In August 2018, the company hired David Stephenson who was the CFO of Amazon’s prime business, as the CFO, in preparation for its planned public offering in 2019 / early 2020. Chief executive officer (CEO) Brian Chesky announced a 25% staff cut earlier in the year to reduce costs, stating that he expected revenues to be less than half of 2019 figures ($4.8 billion). CEO said the company wasn’t then looking at an IPO. Looming over all of this is the poor performance of the very biggest unicorns that went public in 2019, and the catastrophe that was WeWork.

Enjoy flexible access to more than 17,000 global markets, with reliable execution, Trade on the move with our natively designed, award-winning trading app, With 45 years of experience, we’re proud to offer a truly market-leading service. However, any valuation close to this level would be much lower than pre-coronavirus estimates. The info we have makes it clear that Airbnb is in an exceptionally strong financial position, which is estimated to have an overwhelmingly positive impact on early investors.

Latest valuations price Airbnb at a higher multiple of revenue than Lyft and Uber, but some investors believe this premium is warranted given it has already proven it can turn cash into profit, unlike Lyft and Uber who have no clear path to profitability. In this case, Airbnb is said to be working with Morgan Stanley and Goldman Sachs to launch its IPO. There’s probably a 50-50 chance that Unity will finally get out of the gate this year. In May, it bought Hotel Tonight to help guests find last-minute hotel deals. GitLab: This one has become an essential tool for many programmers, thanks to its software development and collaboration tools. Our grey market price is based on our prediction of Airbnb’s market cap at the end of the first trading day. We’re here 24 hours a day, from 8am Saturday to 10pm Friday (UK time).
Start-ups generally choose to issue shares to the public to raise extra cash to fuel future growth, but Airbnb is in the enviable position where it has an estimated $4 billion in cash on its balance sheet (it added a further $2 billion through two separate debt issues in April this year).
"Airbnb is doing the right thing in terms of going public," said Damodaran. Airbnb has an implied valuation of $38B, making it more valuable than large hotel chains (like Hilton and Hyatt), airlines (United Airlines and American Airlines), and other travel companies (Expedia and Ctrip). Unity: The game development platform has been a perennial IPO candidate for the past several years. Or, you could make money by trading Airbnb's shares after it goes public if you correctly predict how the share price will move. Unlike other private tech companies who go public to pay off debt, Airbnb has been profitable for at least two years.

In 2008, Brian Chesky, Joe Gebbia, and Nate Blecharczyk founded Airbnb. But while each year presents its own IPO challenges, 2020 appears to have a number of additional variables in play. VentureBeat Homepage.cls-1{fill:#ed2025;}.SiteLogo__v{fill:#ffffff;}. With 45 years of experience, we're proud to offer a truly market-leading service. And Airbnb is still growing at an exponential rate, with a current $38 billion implied valuation - that's higher than several global travel companies! DoorDash is also reportedly considering a direct listing. The most important IPO in 2020: AIRBNB, the story of revolutionizing the century business of renting bed-space. The San Francisco-based company confidentially filed for an IPO on Wednesday. Call +61 3 9860 1799 or email helpdesk.en@ig.com to talk about opening a trading account. You can: Enjoy flexible access to more than 17,000 global markets, with reliable execution, Trade on the move with our natively designed trading app, With 45 years of experience, we’re proud to offer a truly market-leading service. Profits are stable, and it has managed to get enough funding from private investors. The fact that its owners have refrained from diluting their own shareholdings should be taken as a positive signal. Plans also include launching a loyalty programme, attracting higher quality hotels, and creating a corporate travel business. This morning, for example, Vanguard posted valuations backdated to Feb. 28 for ride-share service Uber, which it valued at $43.44 a share, up 24 percent over the last year; and shared workspace provider WeWork, which it priced at $68, up 31 percent from Vanguard’s previous estimate. They buy these stocks and post estimates of what they may be worth alongside the publicly traded stocks they own, boosting the valuations — or cutting them — in response to updates on the firms’ prospects and stock market conditions. IPOs are released when a company decides to start selling its shares to the public. In this guide we ask if that is even possible, while discussing everything from the AirBnB stock price to the symbols and tickers that give you the exact info, as well as the IPO date. However, it is likely hoping to cash in on increased interest in the IPO market following successful listings by Warner Music Group and Lemonade earlier in the year. In 7 years, Airbnb raised over $4.7B in capital, aggregated nearly 3 million listings, and hosted 500 million guests. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority and is registered in Bermuda under No. As such, Renaissance is projecting 159 IPOs for 2019, with a range of plus or minus 25. The service fee can be up to 12% of the reservation costs. Airbnb signs agreement to acquire HotelTonight.