What is Airbnb?
Airbnb is a marketplace that connects property owners with people looking for a place to stay. Founded in California in 2008 by Brian Chesky, Nathan Blecharczyk, and Joe Gebbia the company originally started as a way for its co-founders to make some extra money by renting out an air mattress in their apartment.
Airbnb has come a long way since and now operates in more than 200 countries around the world, spanning more than 100,000 cities and with over 6 million listings. Its business model is simple and utilises technology to capitalise on peer-to-peer rentals. Anyone with a spare room, house, apartment or even castle can list it on the Airbnb marketplace. Travellers looking for a place to stay for the short or long term can search based on specific criteria before booking. Airbnb acts like a middleman and takes a cut of the transaction.
How does Airbnb make money?
It takes a cut from all transactions made on its marketplace. Homeowners list their properties on the Airbnb app and renters book stays. Airbnb charges a commission between 3% – 5% and is paid by the property owner. There is also a service fee paid by the renter which covers Airbnb’s costs for running the platform, providing a service, and providing support. This varies depending on location, property type, and other factors, but on average, is under 14%.
What is Airbnb’s best selling service?
Its best selling service is its marketplace used by renters and property owners. Airbnbs largest source of revenue is fees applied to all reservations made on its app. It charges homeowners a small fee of approximately 3% – 5% and renters a service fee which on average is around 14%.
Who are the key executives at Airbnb?
Co-founder, Brian Chesky is Aribnb’s CEO. His fellow co-founders, Nathan Blecharczyk and Joe Gebbia are also part of the leadership team. Here’s a selection of some of the company’s key executives.
- Brian Chesky. Chief Executive Officer
- Nathan Blecharczyk. Chief Strategy Officer
- Joe Gebbia. Chairman of Airbnb.org
- Ari Balogh. Chief Technology Officer
- David Stephensen. Chief Financial Officer
- Rich Bear. Chief Legal Officer
Where can I buy shares in Airbnb?
You can buy Airbnb stock on a stock trading platform. These platforms are extremely simple to use but there are different options to suit your specific needs. If you are a first-time investor you might want to use a trading platform for beginners, while if you plan on doing a lot of trading from your phone, a stock trading app might be best.
Are there any other ways to invest in Airbnb?
The simplest way to invest in Airbnb is to buy shares through a stock broker. However, you can also invest through an ETF or a fund. The best ETFs allow you to invest in the stock market more generally rather than focus on one company.
Airbnb is part of the NASDAQ index, so you can invest in an ETF that tracks that index, or choose a technology ETF that lets you own a basket of related stocks from the same industry.
More about the ABNB price
What is the Airbnb stock price today?
The ABNB stock price today is currently $96.63, as of November 2022. The price of Airbnb isdown 43% in 2022. You can use the live Airbnb stock chart to track the NASDAQ:ABNB price in real time above, or compare the Airbnb value today to its past performance using the Airbnb financials tab at the top of this page.
What is the 52-week low for Airbnb stock?
The 52-week low for Airbnb stock is $86.71. ABNB stock is currently 11% above the 52-week low.
What is the 52-week high for Airbnb stock?
The 52-week high for Airbnb stock was $191.73. ABNB stock is currently 49.64% below the 52-week high.
What is the stock forecast for Airbnb?
The average Airbnb stock forecast has a price target of $125 by the end of 2023. Airbnb’s latest financial results, the broader economic outlook, and the industry’s competition all influence these forecasts.
It’s best to take analyst forecasts with a grain of salt but you can use their estimates to help you understand the weight of opinion about a stock.
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Airbnb’s market capitalisation is $60.32 billion. This is calculated by multiplying the number of shares that have been issued by the current ABNB share price. Another way of measuring this is enterprise value, which includes Airbnb’s debt obligations. Airbnb’s enterprise value is $53.92 billion.
Airbnb went public via an initial public offering on December 10, 2020. Its IPO price was set at $68, although it opened much higher on the Nasdaq at $146.
The biggest shareholder of ABNB stock is The Vanguard Group which owns a 5.37% stake in the business. In second place is Capital Research and Management with a 4.59% and third is Fidelity which owns 4.36%.
Airbnb competes with other travel booking companies like Expedia and Tripadvisor. Here’s a selection of some of it’s biggest competitors.
- Expedia. Expeidia is an online booking platform covering all parts of travel.
- Tripadvisor. Tripadvisor is a travel review website that also includes bookings.
- VBRO. VBRO offers similar solutions to that of Airbnb.
Since its listing on the Nasdaq exchange, ABNB has not split it’s stock. Although prior to its IPO, it had a 2-for-1 split for private investors as its price was rapidly rising and a split offered a way to lower it and attract more investors.
Airbnb reports earnings four times a year at quarterly intervals. It reports in March, June, September, and December. It also includes its yearly earnings in December.
No, Airbnb does not pay a dividend. It is a relatively new company and most new companies tend to reinvest profits rather than pay shareholders.
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