According to analysts, such a sharp drop may continue. This conclusion can be made due to the fact that the conducted IPOs on the market are increasingly warning of the appearance of alarming bearish signals on the market.
During the first day of trading, Thursday, December 10, Airbnb shares jumped 120%. The company's capitalization is more than five times its last estimate in April - $ 18 billion. The platform's IPO raised $ 3.5 billion and became the third largest in 2020.
But already on Tuesday, December 15, Airbnb shares dropped in price to $ 124 per share. This is 25% below their first day high of $ 165. And, if on the first day of trading, Airbnb's capitalization rose to $ 103 billion, now it is about $ 73 billion.
Airbnb's IPO has raised the company's valuation in half from expected bookings in 2022, according to analysts. Airbnb's score for its revenue potential was more than three times the average of competing online services Expedia and Booking.com.