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Investing.com — Airbnb Inc (NASDAQ:ABNB) opened trading at $146, more than double the $68 at which it priced on Wednesday, on the heels of Doordash Inc (NYSE:DASH)’s spectacular debut.
The company sold about 52 million shares — originally marketed between $90 and $95 — on Wednesday to raise $3.5 billion in its initial public offering and now has a market value of more than $100 billion.
Airbnb’s IPO is the third-largest in the U.S. this year, topped only by Bill Ackman’s $4 billion blank-check company and Snowflake Inc (NYSE:SNOW)s $3.86 billion offering.
DoorDash shares soared as much as 92% on Wednesday after it raised $3.37 billion in its IPO, Bloomberg reported. The delivery company’s market cap is about $60 billion, which is higher than Lululemon Athletica (NASDAQ:LULU) Inc. and Ford Motor (NYSE:F) Co. DoorDash is trading down about 5% on Thursday.
Airbnb, founded in 2007, saw business plummet amid the Covid-19 pandemic, which put a major halt to international and national travel. But business rebounded after domestic travel rebounded and guests took trips closer to home. The work-from-anywhere theme has also supported the company as city-dwellers have sought refuge outside of urban areas. In addition, it has been a boon for those who need to supplement their income, or lack thereof, amid millions of job losses.
As of Sept. 30, Airbnb had over 4 million hosts around the world, with 86% of hosts located outside of the U.S. Hosts had 7.4 million available listings of homes and experiences, of which 5.6 million were active listings. The company estimates the total addressable market for its services to be $3.4 trillion, including $1.8 trillion for short-term stays, $210 billion for long-term stays, and $1.4 trillion for experiences.
Airbnb has incurred net losses since its inception, including $696.9 million for the nine months ended Sept. 30.
