Airbnb soars over 100% in opening Nasdaq trade

Airbnb Inc. shares surged over 100% Thursday in their opening trade on the Nasdaq.

Shares of the San Francisco-based online travel accommodations booking website opened at $146 after pricing at $68 on Wednesday evening. They were expected to price between $56 and $60 per share. Shares trade under the ticker ABNB.

The pricing raised $3.7 billion and gave Airbnb a $47 billion valuation on a diluted basis, making it the largest initial public offering of 2020. The post-IPO gains ran the company’s market value to more than $100 billion. Quicken Loans parent, Rocket Cos., debuted in July at an almost $44 billion valuation.

Airbnb will now compete for investor funds with major hotel chains.

Like hotels, Airbnb’s business was hit hard as stay-at-home orders aimed at slowing the spread of COVID-19 eliminated most nonessential travel.

The company reported April bookings fell by 72% from the year prior, resulting in more than 1,900 layoffs, or about 25% of its workforce.

Business rebounded as the economy reopened, with revenue down 19% year-over-year to $1.34 billion in the most recent quarter. The company reported a quarterly profit of $219 million.