Airbnb: Why Now May Be the PERFECT Time for a Travel Company to IPO

Investors appear to be looking past the current headwinds to a bright future for the firm

Uptrend 4

After more than five years of speculation and anticipation, US home rental company Airbnb (ABNB) is finally poised to go public, likely on 10 December, as the final mega-IPO of the year (though the DoorDash IPO will also command investors’ attention ahead of the holidays).

Needless to say, a travel-dependent company going public in the midst of a global pandemic isn’t optimal timing, but investors appear to be looking past the current headwinds to a bright future for the firm. According to Airbnb’s IPO prospectus, the firm saw Q2 revenue fall -72%, forcing the company to lay off 25% of its workforce and take on nearly $2B in high-interest debt; Sales fell “only” -18% to $1.3B in Q3, and the firm was able to post a profit of $219M after cutting costs earlier in the year.

While travel has been upended in ways no one could predict, Airbnb has been able to recover faster than many of its more traditional peers as travelers seek out quieter, more private destinations and longer stays. Coming into 2020, Airbnb was valued at around $35B in the private markets before dropping as low as $18B in April, but based on recent headlines, the firm is targeting a valuation range back in the $30-33B range. In other words, as with the broader markets, Airbnb’s investors are looking past the current rough patch toward a "return to normal" in H2 2021, perhaps with particular pent-up demand for travel.

One factor supporting ABNB’s valuation has been the staggering rally in recent IPOs more generally. Some readers are no doubt familiar with the big moves in Snowflake, Inc (SNOW) and Palantir Technologies (PLTR), but the excitement around IPOs has been broad and widespread over the last eight months. For example, the Renaissance IPO ETF (IPO) - featuring top holdings such as Moderna (MRNA), Uber Technologies (UBER), Zoom Video (ZM), and Pinterest (PINS) – has more than tripled off its mid-March low:

Source: TradingView, GAIN Capital

With broad indices testing all-time highs and traders willing to look past a long winter to a “spring thaw” in economic activity, the ABNB IPO could well follow in the footsteps of other successful IPOs over the last two years when it hits traders’ screens next week.

More from Tech Stocks


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.