Airbnb sinks as insiders become free to sell shares

The Airbnb logo is seen on a small mini pyramid under the glass pyramid of the Louvre Museum in Paris, France, March 12, 2019. REUTERS / Charles Platiau / File Photo

May 17 (Reuters) – Shares of Airbnb (ABNB.O) fell nearly 6% in a busy session on Monday after insiders at the house rental company became free to sell their shares for the first time since the company’s IPO in December.

It was among the five most traded stocks on Wall Street at midday, with around $ 3.3 billion in shares bought and sold, compared to an average of less than $ 1 billion a day over the past 20 years. sessions, according to data from Refinitiv.

On May 13, the San Francisco-based company exceeded Wall Street expectations for first quarter bookings and gross revenue as COVID-19 vaccinations and easing restrictions encouraged more people to s ‘save in its vacation rentals. Read more

Airbnb has weathered the pandemic better than its rivals, as people have reserved locations far from big cities in the age of social distancing. Following Airbnb’s report last week, Jefferies analyst Brent Thill called the company “the best growth story in travel.”

Airbnb said in the prospectus of its Dec. 9 initial public offering that up to 27.8 million shares, including those owned by employees, could be sold as of the second trading day immediately following the report of the first. quarter of the company. Airbnb has about 608 million shares outstanding, according to Refinitiv.

Shares traded down 5.7% to 133 by noon, after falling lower to 130.25.

Airbnb is up 92% from the price set in its IPO, which was Wall Street’s biggest in 2020, but is down about 40% from its February high.

Reporting by Noel Randewich; Editing by Dan Grebler

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