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Airbnb saw its market valuation surge above $100 billion for the first time ever.
American vacation rental online marketplace company based in San Francisco Airbnb Inc (NASDAQ: ABNB) has seen a growth in its stock price as well as its overall valuation. The growth comes on the heels of another record close of Airbnb (ABNB) stock on Wednesday with a gain of 5.72% US$169.99 per share.
As reported by the Motley Fool, this growth in ABNB’s stock is the third time this week the stock will be closing above 3% with yesterday’s growth seeing as high as a 9% surge in intraday trading. These moves cement the positive momentum the stock is gathering since it went public a little over a month ago.
Airbnb is reportedly up even in today’s pre-market following the announcement by the company that it is canceling all reservations ahead of the United States Presidential inauguration coming up next week while also disallowing new reservations to be made. The move was necessitated following the attack on the Capitol last week by President Donald Trump’s supporters and the authorities are tightening the security around the capital to prevent the outbreak of any form of violence during the ceremony.
Following the cancelation, Airbnb said the company will be making a refund to those that already made bookings and also noted that it will be giving hosts the commissions they would have made from the canceled reservations at its own cost. The move by ABNB appears to be backed by its investors as reflected in the recent stock performance.
ABNB Stock Took Bigger Dives as Driven by Other Sentiments
ABNB stock is not just being pumped by the adherence to the authorities’ request to prevent the crowd from storming Washington DC in the coming week, the stock is also being driven by sentiments born out of the ban of hate groups from the Airbnb community. The company noted that it has identified and banned “numerous individuals” from its platform in line with this. The company saw its market valuation surge above $100 billion for the first time ever.
Renowned global investment manager, T. Rowe Price Group Inc (NASDAQ: TROW) per the Fool’s report is said to own about 10% of Airbnb’s common shares. The revelation of this position can also serve as a catalyst for attracting new investors to place a bet on the online rental service company. For reference, other online rental marketplaces including Seattle, Washington-based Zillow Group Inc (NASDAQ: ZG) recorded a dip in its share price by 1.53% to US$149.88 per share.
Airbnb is still in its infancy as a publicly-traded company with enough potential to grow in the near and long term. Airbnb now has 12 buy ratings, 19 holds, and 2 sell recommendations with an average share price target of $147, according to data compiled by Bloomberg.