How to buy Airbnb shares
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This guide gives you all the information you need to know in order to invest in Airbnb. Learn how to invest in the stock market, read a brief history of Airbnb, and find the best online stock brokers to get shares with.
Compare the best Airbnb trading platforms
The brokers below are the the top platforms around. Our team of experts has been through all of the leading options and ranked them based on their features and accessibility. If you’re not ready to invest yet, keep reading for more information on Airbnb.
How to buy Airbnb stock, a step-by-step guide
The process of buying shares in Airbnb isn’t massively complicated, so don’t worry even if you’re new to stock investing. These are the steps to follow in order to complete your investment:
- Choose a broker. In order to get Airbnb stock, you will need to use an online brokerage platform. There are many different options to choose from, each with their own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Airbnb shares.
- Place an order for ABNB stock. Now navigate to the broker’s buying stocks page (a link to this can be found in the menu on the website). Here you’ll be able to search for Airbnb’s ticker symbol (ABNB) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you wish to buy and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Airbnb shares will be listed in your account. Congratulations, you’ve just bought shares in Airbnb!
What is Airbnb? And should I invest?
Airbnb is a marketplace for renting out spare rooms and holiday homes online. Formed in California in 2008, it now makes up nearly a quarter of all rental bookings and has listings in more than 200 countries around the world.
CEO Brian Chesky came up with the idea for Airbnb as a way of making some extra money by renting out an air bed in his flat. From those humble beginnings it has become one of the most disruptive tech startups around, completely changing the way people look for a place to stay.
Investing in growth stocks like Airbnb means taking on some risk with the hope of big rewards later on. It loses a lot of money every year: a stunning $670m in 2019, even before the pandemic made things worse. But it makes billions of dollars in revenue with just 25% of market share. If and when it can cut back on its costs, the potential profits could be big.
How has ABNB performed as an investment in recent years?
When Airbnb made its shares available to trade in December 2020, their price doubled on the first day. Having targeted a $68 starting price, it closed day one at $140 and was already over $200 by February 2021.
That share price has been at a bit of a disconnect from the underlying business performance. Alongside its existing losses, COVID-19 hit it hard. Far fewer holidays and much less business travel led to a 30% drop in bookings and a 22% drop in revenue.
It’s the revenue that’s the key number for investors in general: so long as that keeps going up, the market tends to react positively, even if the losses are big as well. AIrbnb’s share price soared very quickly because it routinely reported revenue increases prior to the pandemic, up nearly a billion dollars every year from 2014-2019.
Is it a good time to buy Airbnb shares now?
It could be a good time to invest as the world recovers from the coronavirus pandemic. More travel would be good for Airbnb, helping it increase the all-important revenue numbers back up again.
The holy grail for this type of tech stock is profitability. Airbnb has lost a lot of money so far but much of it has gone on acquisitions that build a presence in more countries, or marketing to increase brand recognition. Those are short term costs that should ease off to drag it back towards making a profit.
The big warning sign to look out for is increased regulation. Many cities aren’t happy with Airbnb driving up rent prices and it has battled controversy over price gouging and a poor safety record as well. New laws could affect its dominance of the market or force it into even more costs to comply. Our market analysis can help you keep on top of any changes:
Buying, selling and trading Airbnb shares for beginners
What to do before buying shares
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before investing in Airbnb shares.
- Research the company. You should always examine the fundamentals of a company before buying its stock. What is Airbnb? How did the company get its start? How did it grow? Is Airbnb’s revenue and profit growth picking up? Is the company innovating? The more you know about Airbnb, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before you start investing in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Use our broker reviews to find the right platform for you.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. While if the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Follow the news to stay on top of the financial markets.
What is the difference between buying, selling, and trading shares?
If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Airbnb shares. Here’s a quick run-through of what’s involved in each.
This process involves finding a broker and placing an order for Airbnb stock as outlined in the steps further up this page. Ideally you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
When you sell any Airbnb shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might decide to hold for a long period of time, hoping to benefit from the company growing steadily throughout. Or, if you see that Airbnb’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading is the same process as buying and selling shares, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade Airbnb shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Share dealing vs CFD trading
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealing refers to the practice of buying and holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks will give you an income through regular dividend payments
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into ABNB shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, use our trading course and read our guide to CFD trading to get you up to speed.
If neither of these options appeal to you, then you can find a variety of other ways to invest in ABNB stock on this page. If, however, you’re ready to go straight away, then a broker is the best place to buy Airbnb shares in the UK now.
How to choose a broker
With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to buy the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as cryptocurrency and commodities.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers to place trades and buy shares. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want use a specific payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
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Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >