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.
It’s no surprise that investors are bullish, says Jim Armitage in the Evening Standard. Airbnb may not “have the first clue about how to fold a doily”, but it does offer the “biggest, cheapest, perhaps quirkiest selection of rooms to sleep in across the world” and has used “brilliant technology” to do this “quickly and easily”. Even Covid-19 won’t hold it back. With “millions – perhaps hundreds of millions” of people “just desperate to travel”, demand “will bounce back like we’ve never seen before once the vaccines take hold”. What’s more, customers are likely to prefer somewhere “where as few people as possible have been congregating”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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”.
-
Barclays begins paying up to £100 compensation to customers after banking outageBarclays will pay up to £7.5 million in compensation to customers after its banking services were disrupted by an IT outage
-
Review: Shangri-La Paris – an ode to the world’s best foodNatasha Langan enjoys fine French and Chinese cuisine at the Shangri-La Paris
-
Falling revenues and mounting debt spell trouble for Jumia TechnologiesStruggling African e-commerce platform Jumia Technologies looks headed for the exit, says Dr Matthew Partridge.
-
Next reports £1 billion in annual profits for the first time – what's next for the retailer?Clothing retailer Next has become only the fourth member of its sector to surpass £1 billion in annual profits. What does this mean for the company's future?
-
Best of British bargains: cash in on undervalued companies in the UK stock marketOpinion Michael Field, Chief Equity Market Strategist, EMEA, Morningstar, selects three attractive UK stocks where he'd put his money
-
Building firm Keller presents low debt and ample scope for growthGeotechnical contractor Keller, which supports vital global infrastructure, boasts rising profits and a cheap valuation
-
PZ Cussons share price down 75% in last decade – why it's one to watchOpinion Once-strong consumer-goods business PZ Cussons is out of favour with the market. That spells opportunity for investors, says Jamie Ward
-
Cash in on the biotech sector with specialist trust BioPharmaOpinion BioPharma has an attractive niche in lending to asset-rich biotechnology companies
-
India's stock market decline wipes out $1.3 trillion in market value – can investors stay optimistic?More than $1 trillion has been wiped off from India's stock market after investors turn to China. Has the emerging-market darling hit rock bottom?
-
Pensions revolution: how to profit from the trends shaping the UK pension systemThe UK pension system is one of the biggest in the world. Big changes are under way, says Rupert Hargreaves
