Airbnb sells shares at $68 in IPO, pricing above vary
Brian Chesky, CEO and co-founder of Airbnb Inc., speaks at the New York Stock Exchange (NYSE) Economic Club meeting in New York, US, Monday, March 13, 2017.
Michael Nagle | Bloomberg | Getty Images
Airbnb, a company that allows users for short-term rental and travel experience, sold shares on the IPO for $ 68, at an exorbitant price, according to people familiar with the matter.
The donation on Thursday appreciates the company’s $ 47 billion total. The company has already said it expects to sell shares for between $ 56 to $ 60.
Based in San Francisco, Airbnb makes money by paying temporary rent managers, or tourists, as well as tourists the money they spend on reservations that the company does.
Airbnb made $ 219 million out of a $ 1.34 billion payoff last year. That was down 19% from $ 1.65 billion in payments last year. Despite losing a lot of money, the company made another profit, including the second and third quarters of 2018 and the third quarter of 2019.
For the entire year in 2019, the company also reported a loss of $ 674 million at a cost of $ 4.81 billion. So far in 2020, the company has lost about $ 697 million in value to $ 2.52 billion. The decline could be due to the Covid epidemic, which causes brakes to rest and travel business earlier this year. The epidemic has cost travel companies about $ 481 billion in lost pay since early March, according to a December 3 report from the US Travel Association.
In April, shortly after the epidemic in the US, the company raised $ 2 billion in new loans worth $ 18 billion and announced major trials, including plans to lay off 25% of its employees, or about 1,900 employees. The company also reduced advertising costs and raised billions in debt.
Airbnb came back, however, after increasing rent in rural areas because people with money fled cities that were closed. The outbreak began within two months of the epidemic, the company said.
Airbnb is # 41 on the 2020 list of CNBC Disruptor 50 and is the only one recently mentioned on CNBC’s annual list 8 times.
Airbnb’s IPO follows DoorDash, which went on sale Wednesday. The value of DoorDash rose 86% to $ 189.51 from its IPO value of $ 102. The closing value of DoorDash is $ 60.2 billion.