Airbnb Aims for the Stars with New IPO Target

November 30, 2020

In can only be described as a power move, Airbnb is planning on targeting a higher valuation range than what investors were previously expecting-- a total that could reach as high as $33 billion for its long-awaited IPO. 

As the short-term rental hosting platform searches for mutual and hedge funds to invest in the IPO, it will be holding a number of Zoom meetings for investors to bring in the needed capital within the next month. 

The risk here is obvious. Its high valuation target is rare. Most companies ask for more modest offering ranges to leave room to improve before the trading phase begins. 

So why the risk? Airbnb saw declines in user traffic, revenue, and inventory due to the Covid crisis. Many, our publication included, expected the company to continue this downward spiral as the market was expected to also take a nosedive. Fortunately for the platform, and though it did see downturns in numbers, it has since bounced back.

Investors are still wary. In the Polish market, 6,000 apartments were taken out of Airbnb’s inventory as those opted to stay home and out of public during the pandemic. It will be stories like this that will be road bumps in the way of Airbnb’s public status and whether its stocks can reflect its outrageous valuation. 

November 30, 2020
Victoria has been writing about property portals and marketplace sites for Online Marketplaces for over 3 years. She is also our resident artist and is responsible for all of the infographic content on the site.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Cooperrocketacq
Rocket to Acquire Mr Cooper Mortgage Service for $9.4 Billion

Rocket Companies has announced a $9.4 billion all-share deal to acquire Mr. Cooper, the largest mortgage servicer in the United...

Read More
Scout24 German Houses 1
Scout24 Closes Another Data-Focused Acquisition

Germany-based marketplace operator Scout24 has continued its expansion into real estate data with the acquisition of Austrian proptech firm ImmoUnited....

Read More
People Roundup 28Mar 2
People Roundup: Aviv Group, Pisos.com, Kleinanzeigen, REA India, Anjuke

There have been several high profile C-suite moves in this week's People Roundup. We'll start in Europe...   Europe: Aviv...

Read More
Product Update 2025Mar28 3
Product and Services Roundup: Zoopla, ViewIt

This week's Product Roundup starts in the UK, where it's all about Zoopla...   UK: Zoopla's MyHome product is used...

Read More

Editor's Pick