Shares in home rental platform Airbnb “more than doubled” when the company started trading on the Nasdaq last week, says Dominic Rushe in The Guardian. Initially priced at $68 a share, the stock surged to more than $150 at one point, ending the first day of trading at $144.70.
This means that the company, founded in 2008 when the cofounders rented out air mattresses in their San Francisco apartments, is worth around $100bn, twice the value of Marriott, the largest hotel operator.
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Investors need to calm down, says Lex in the Financial Times. It’s true that travel trends “are on Airbnb’s side” amid “persistent wariness” over “crowded hotels and planes”. Still, remember that the company is currently losing money, which means that it will need to “keep a lid on costs” at the same time as it needs “outlandish growth” to justify its “lofty valuation”. As a result, “investors seeking a bargain should stay at home”.
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