Airbnb shares tumble after more than doubling last week
Wall Street has doubts about Airbnb’s sparkling market debut last week.
Shares of the home-sharing giant – which more than doubled last week when the company went public – fell more than 8% on Monday after a research firm downgraded its rating on the shares , citing doubts as to whether the company’s performance would be able to justify its high price tag.
“The investors we spoke with love Airbnb’s business model and want to be long-term holders, but are now considering selling the stock as they no longer feel comfortable owning it at a valuation premium. from 300 to 400 percent, ”Gordon Haskett Capital wrote analyst Robert Mollins, downgrading his rating on Airbnb shares to underperform versus buy.
The home-sharing giant went public on Thursday when its shares went from its listing price of $ 68 to $ 165. They closed at $ 144.71, giving the company a market cap of $ 83 billion, more than the market values of Marriott, Hilton and Hyatt combined.
On Monday, stocks recently lost 8.3% to $ 127.70.
Mollins said his price target for Airbnb shares was $ 103 per share, saying it remained “positive” in his forecast for the “long-term” future of the company. But he added that an “overwhelming majority” of investors he spoke to are interested in taking advantage of their quick wins.
Airbnb CEO Brian Chesky, 39, made $ 6.5 billion richer – and was also silent – last Thursday as the vacation rental giant’s share price plummeted. more than doubled when it debuted in the successful market. The increase shot Chesky’s net worth to more than $ 11 billion, giving him a fortune larger than record executive David Geffen and hedge fund mogul Steve Cohen, according to the Bloomberg Billionaires Index.
“This is the first time I’ve heard this number,” he told Bloomberg Television, stumbling over his words. “So I… I don’t know what else to say.” It’s… it’s a… it’s a very… it’s… uh… it’s… yeah… I’m very touched by this.