By Anthony Morgan 

One of the Taking Stock ANALYSTS has projected that Airbnb shareholders are in for even more rewards despite mixed reactions from the market to the company going public.

Despite the damper the pandemic is putting on the travel industry, the online vacation rental company’s stock opened at US$146 on December 10, more than doubling the IPO price of $US68.

The company raised some US$3.5 billion in its Initial Public Offer (IPO), the largest tech IPO of the year, besting delivery company, DoorDash, which also gave a strong performance last week on its first day of trading.

Wealth Advisor at Ideal Portfolio Services, Dwayne Taylor, said the situation was a big deal for investors as it meant they would have made more than 100% return on their investment.

Taylor said the company’s initial public offer (IPO) was highly anticipated despite the fallout from COVID-19. 

“Roughly 50 million shares were being sold by their entity and there was another set of private stockholders that were selling abt 1.3 million shares and all of that was filled up.  Right now investors would be pleased with what they’re receiving,” said Taylor. 

Since its big day on December 10, AirBnb’s stock has declined by roughly 5%, trading around US$138 on December 16. 

On Monday (December 14), research equity firm, Gordon Haskett, also downgraded Airbnb to underperform from a pre-IPO buy rating, describing the company’s IPO surge as more than stretching the firm’s stock price, which is said to be about three times the valuation accorded to rival online travel agencies.

Gordon Haskett expects to see Airbnb trading closer to $103 a share by the end of next year as opposed to its current price.

However, Taylor reasoned that the company’s stock stands to grow even further, especially with developments happening with COVID-19 vaccines around the world including the United States.

A Jamaican critical care nurse in New York was the first person in that city and among the first in the United States to get a shot of the coronavirus vaccine on December 14.

The introduction of vaccines represents the start of a return to normalcy in the world, paving the way for companies like Airbnb to once again see heightened levels of activity.

“Vaccine approval has impacted people’s perception on a stock [such] as Airbnb.  There is speculation for it to grow even further.  The market has responded very well to it and there is still more room for growth,” said Taylor.

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