The good news: Airbnb’s IPO is staggering
Strivings of Airbnb to its IPO were one of the major goals of the company during 2020. The company hoped for strong interest from businesses and involved parties. But their hopes came true much farther than that – the IPO became staggeringly successful for many people, including the company’s leader Brian Chesky.
An initial goal of the IPO was to hit the stock price equal to $68. But at the closure on December 10th, 2020, the cost was $144.71. That’s 113% more than the initial price. Thanks to this, Airbnb immediately started to worth nearly $101 billion, making the company’s share of Brian Chesky worth over 11 billion dollars. Mr. Chesky was so impressed by such a successful IPO that his first reaction to this was speechless; he couldn’t pick the words to express himself.
This IPO made Airbnb gain over $3.4 billion in its first day of trading. This is the 2020’s strongest IPO. With such news, Robinhood, a stock trading app, has swiftly added tens of thousands of new traders on the market in addition to millions of existing, all trying to raise quick cash on the market growth.
Many specialists tell about the ‘absurd’ overpricing of some companies, obviously pointing at Airbnb. They tell that the euphoria of the ‘bubble’ on the market can quickly drop, leaving millions of people to whine and whimper in a few upcoming months about huge losses because of their reckless investments on the hype.