Last Updated: April 15, 2022
Ok, perhaps you don’t have enough money to own that luxury villa in the Maldives.
But have you considered becoming a partial owner of the company that brings the most profit to it?
That’s right, Airbnb stocks are available for purchase since the end of 2020, and they have more than doubled in value since.
Are Airbnb stocks on their way to becoming blue chip stocks?
Are they a good investment?
And how to buy Airbnb stock?
Let’s find out!
Airbnb came to life at the end of 2007 when two broke guys decided to host three guests in their home in San Francisco. What started as a simple experiment, soon enough, became one of the world’s most famous renting corporations.
The term Airbnb is the abbreviation of the initial name Air Bed and Breakfast. Interestingly enough, the first three beds offered at the time were actually air beds.
At the time, there was a conference taking place in the city. The two young men noticed that all the hotels were crowded. So they decided to rent out the space in their flat with the mentioned beds and breakfast in the morning.
Investing in Airbnb didn’t always sound so lucrative. At first, the co-founders Brian Chesky and Joe Gebbia struggled to raise funds to support their hosting network. To most people, the idea of renting your home to complete strangers at a lower-than-hotel price didn’t sound very convincing. Or safe, for that matter. And only after the official website launched in August 2008, the business started slowly taking off.
The year 2009 was the charm! The third musketeer Nathan Blecharczy had already joined the team, and after many trial and error scenarios, they came to find the magic formula.
New Airbnb investors, hosts, and guests got attracted by:
- Better marketing — website design, funny jingles
- Quality pictures of listings — some of them the co-founders took personally
- And most importantly, the market expansion from shared spaces to all types of rentals
Today, the company counts close to 1 billion worldwide arrivals.
The company went public eleven years later. The exact Airbnb IPO date was December 9, 2020. The stocks were priced at $68 that evening. The following day, the shares got available for trade on the NASDAQ at the price of $146 per piece. The closing price of Airbnb stock for the day was $144.71, almost 113% higher than estimated.
Airbnb hasn’t had any stock splits yet.
The company continues to trade on the NASDAQ stock exchange under the recognizable Airbnb ticker ABNB.
Recent Airbnb business statistics
The company’s growth statistics, aside from being interesting, can, at times, help in predicting the future stock value if followed carefully.
Here are some impressive Airbnb statistics that can directly or indirectly affect the Airbnb stock price in the future:
- There are approximately 100,000 cities with Airbnb listings all around the world.
- Currently, over 4 million hosts rent their property with the help of Airbnb.
- Together, hosts have earned $110 billion since the platform launch.
- The average annual earning per host is above $9,000.
- The company value is approximately $130 billion as of July 2021.
- Even despite the COVID-19 pandemic and the rise of several rival companies, Airbnb.com has managed to rebound. It remains among the top 5 renting websites, according to the most relevant sources.
Should I Buy AirBnB Stock?
It’s hard to say what the future may hold for a public company as young as Airbnb.
The world’s demographic picture is changing rapidly along with the ongoing trends. Due to stronger than ever mass media and social networks influence, today’s greatest hype often disappears into complete oblivion tomorrow.
But one thing we learned from the most recent experience — people will travel no matter what!
After more than a year of holding breaths due to the pandemic, it seems like people are ready for the change of air. Bookings are rising by the day, along with the Airbnb stock price prediction.
Airbnb Stock Performance
In little over eight months since the Airbnb IPO release date, the stock showed impressive resilience, if not profitability.
It reached its highest value on February 11, 2021. The average price per stock was $216.84, marking a 219% increase from its IPO price. That was also 50% higher than its closing price for the first day of trading.
Then May came, and the company faced difficulties due to the news of COVID-19 virus mutation. Besides, this period coincided with the expiry of the lock-up period, leading to investors selling their shares. Subsequently, the ABNB stock price underwent a correction of -39%, dropping to $132 on May 17.
Luckily, the company came up with a new strategy, announcing the release of over 100 rental upgrades. The aim was to refine and improve every aspect of the Airbnb service. The strategy ended up being fruitful. The stock reached the value of $148.97 by June 7, 2021, which is a 12% increase.
As of August 25, 2021, you can get Airbnb stock for approximately $161, with the day low being $163.4 and the day high $158.
Over the last 52 weeks: Airbnb stock value ranged from the lowest ever, $121.50 on December 12, 2020, to the highest ever, $219.94 on February 11, 2021.
So far, the company doesn’t pay dividends.
Is Airbnb stock a good investment?
The official Airbnb quarterly financial results show that Airbnb has already recuperated to the pre-pandemic revenue levels in the first quarter of 2021. The $887 million in revenue meant an increase of 5% year-over-year. More than 64 million nights and experiences were rented during this period, leading to a year-over-year booking volume increase of 13%.
The total net loss of $1.2 billion for the 1Q of 2021 was mainly due to the repayment of long-term loans, stock-based compensation, and business investments.
With the expected pandemic subsiding, and subsequently higher eagerness to travel, these results could furthermore improve.
Various creators of Airbnb stock forecasts even predict that 2022 will be the Airbnb year, profit-wise. However, keep in mind that this isn’t any kind of guarantee against stock value depreciation.
On top of that, many experts claim that the Airbnb shares currently hold an unrealistic value given the losses. They advise the investors to remain patient for a little longer and wait for the company to establish its position among the competitors. Those who had already invested in Airbnb should probably wait for more favorable timing to sell stocks as well.
Here’s a valuable stock market tip:
Before making your next speculative decision, recapitulate where you currently stand with your investments. Keeping track of your assets, gains, and losses can often be much more valuable to you than any other stock market statistic.
Furthermore, you can ask yourself these questions:
- How would Airbnb stock fit your portfolio?
- Have you ever invested in a company such as Airbnb before?
- How is your experience with the hospitality business in general?
If the Airbnb investment means diversifying your portfolio, it’s already a good reason to proceed with this idea. Keep in mind that the optimal stocks and bonds ratio should be somewhere on the line of 70% to 30%.
If, on top of that, you have some positive experiences in the field and enough knowledge about the business, those may definitely help.
And if you’re new in the public market or simply unsure of your next step, you can always trade with the help of some of the best online stock screening tools. Nowadays, even specialized stock brokers for beginners offer an impressive service, especially if you need to start learning from scratch.
How to Buy Airbnb Stock Guide
The following are the three most common ways of purchasing Airbnb stocks. We will take you through a step-by-step purchase procedure for each of them.
Directly from NASDAQ
NASDAQ, or the National Association of Securities Dealers Automated Quotations, is the world’s first electronic marketplace for trading assets. Aside from trading equities, bonds, ETFs, and various derivatives, NASDAQ provides insight into popular cryptocurrencies.
Various educational programs and simulators are available on the NASDAQ platform. So this could be a great place to start your exchange.
To buy Airbnb stock from NASDAQ:
- Open your browser and visit Nasdaq.com.
- A well-organized and highly responsive web page will appear (you won’t have any issues navigating through it).
- Look for the Find a Symbol box on the right side of the landing page.
- Type in the Airbnb ticker symbol — ABNB in the box.
- The page with ABNB’s recent statistics and values will show up.
- From there, you can choose to add the stock either to your watchlist or to your portfolio.
- Create the account or log in to the existing one to complete the purchase.
Online brokers and trading platforms
Online trading platforms are getting more and more popular due to their advanced features and ease of use. Most of them, like eToro and Charles Shwab, have already implemented mobile apps to further improve your trading experience.
To invest in Airbnb via an online broker or trading platform, here’s what you should do:
- Research the brokerages available — this is the part that will take a fair share of your time, but it pays out in the long run.
- Choose the one that fits your trading needs the most. From Robinhood, which is suitable for beginners, to SoFi Investing, which is great for building one’s portfolio, your options are immense.
- Open an account within a brokerage firm of your interest by filling up the required information fields.
- Complete all the necessary payments and add enough funds to your account.
- Check the Airbnb share price and decide whether to complete a market order and buy the stock at the current price.
- Alternatively, you can make a limit order and delay your purchase until the shares reach the desired price.
Some people prefer trading with the help of professional financial advisors since they can provide them with additional insight and tips.
As great as different online platforms and robo advisors can be, they lack human reasoning and touch. Besides helping you with the purchase itself, a knowledgeable and honest financial advisor will tell you should you proceed with the Airbnb stock buy in the first place.
Furthermore, it may be difficult for an automated tool to thrive in an unforeseeable situation, such as the ongoing pandemic. People are better at adapting to unexpected changes. And can, at times, better predict the outcome based on previous experiences.
Still, one should be careful when choosing a financial advisor since their abilities often mismatch the ones from their ad. Not to mention that their services can turn out to be very expensive.
Final Thoughts on Whether and How to Invest in Airbnb
It’s very difficult to envision which company shares will bring you profits and which may ultimately turn into losses. Unless you have a super experienced trading advisor, the final trading decision should always be yours. Sometimes, even then.
As for Airbnb, with the human never-quenched thirst for traveling, ever-increasing vacation costs, and expanding Airbnb market cap, investing in this world hosting leader may not be a bad idea.
Some experts argue, though, that patience is the key. Besides, the company is too short in the market for anyone to fully grasp its stock fundamentals and volatility.
As for how to buy Airbnb stock — this shouldn’t raise any difficulties. The shares are available for purchase on most trading platforms, including the NASDAQ exchange. And, if in doubt, you can always hire an expert financial advisor.
Yes, Airbnb went public in December 2020 on NASDAQ.
The Airbnb stock symbol is ABNB.
Most stock market experts agree that Airbnb stock is a good stock to buy, especially if it will diversify your portfolio and you are not planning to sell it immediately. If you want to learn how to buy Airbnb stock, refer to our section dedicated to the stock purchase.