Airbnb, Inc. Stock Price (ABNB)

What is Airbnb stock?

Airbnb, Inc stock gives investors and traders exposure to Airbnb's online marketplace for travel information and booking services that has disrupted the market since its conception in California in 2007. It trades on the NASDAQ stock exchange under the ticker symbol ABNB.

It operates on a peer-to-peer model that allows people to list and rent short-term accommodation. As of mid-2023, its community included over four million 'hosts' who'd welcomed over 1.5 billion guest arrivals in around 220 countries.

The company's founders initially wanted to offer a casual, affordable alternative to hotels in San Francisco. Guests would stay on airbeds – hence the name – in people's homes, with the platform collecting commission from booking costs.

The concept has expanded to encapsulate over seven million active listings worldwide, from apartments and houses to unique stays such as castles, treehouses and igloos. Since 2016, the platform has also offered exciting bookable experiences through the same peer-to-peer model. Collectively these services earned the business a record $8.4 billion in revenue in 2022.

How has Airbnb stock performed historically?

Airbnb invited the public on its journey in late 2020 after one of the most anticipated and successful IPOs of recent times. Despite the challenges of COVID-19 on the travel market, the Airbnb share price closed at $144.71 on its first day, over double the initial IPO target of $68.

The stock has shown volatility in the months and years since as the global economy and the travel market have fluctuated. It posted a high of around $215 in mid-February 2021 but fell to below $90 in June and December 2022.

The ABNB share price has rebounded somewhat in mid-2023 to sit close to its launch level.

What affects the Airbnb stock price?

Like any financial asset, the Airbnb stock price is driven by a wide range of factors affecting market sentiment and supply and demand. Understanding these potential triggers can help you identify and capitalise on price fluctuations and trends:

• Earnings: Airbnb publishes quarterly and annual financial results covering revenue, cash flow, customer demand and more, plus forecasts for the next period. Positive numbers tend to drive demand and share price up – particularly if results exceed expectations – and vice versa. New services and product updates can also contribute to these figures by driving investor sentiment.
• Economic conditions: Economic health, including key factors such as inflation, can impact people's ability or desire to travel for leisure. Major growth or decline in Airbnb bookings don't go unnoticed by investors and can be reflected in its share price.
• Competition: The travel market is tough and Airbnb faces competition from more traditional booking sites such as Booking.com, Expedia and Hotels.com, plus like-for-like brands including Vrbo. Any gain or loss in market share can have a bearing on the price of Airbnb stock.
• Legal and PR issues: Airbnb is no stranger to legal battles and controversy. Many governments and local authorities have updated regulations and taxes around short-term rentals. And guest safety is a constant issue that's difficult to manage at Airbnb's scale. Negative updates can hurt the brand and deter investors.

How to trade or invest in Airbnb stock

Buying Airbnb stock directly

Investing in Airbnb stock means taking direct ownership of the shares, giving you the flexibility to hold them longer term or sell and profit when the price rises. You can invest from your Tradu account by simply adding funds and selecting how many ABNB shares you want to buy.

Buying the stock directly is ideal if you have a longer-term investment plan, and typically exposes you to less volatility than trading derivatives. You won't be able to profit from bear markets though – or use leverage to increase your position size.

Trading Airbnb stock through derivatives

A different option is to trade Airbnb stock using contracts for difference (CFDs).
These are financial derivative products that allow you to speculate on the stock's price movements in both directions without taking ownership of the underlying asset. Both are leveraged too, allowing you to take larger market positions from smaller deposits, increasing your profits or losses while freeing up capital.

• CFDs are short-term contracts that track the value of an underlying asset such as Airbnb stock. You take a position on the future value of the asset, with your profit or loss based on the difference between the opening and closing prices of the contract.

Read our expert guides for the finer details.

CFD trading guide
Leverage trading guide

Pros and cons of Airbnb stock

Pros of Airbnb stock

• Travel industry leader: Airbnb stock provides exposure to an innovative, forward-thinking leader in the travel sector. Its customer base has grown into the millions, with demand and revenue increasing in 2022 as COVID-19 travel restrictions were further eased worldwide.
• News coverage: The Airbnb brand has become synonymous with its type of travel. Its high profile ensures Airbnb stock news is frequent, widespread and easy to access, supporting your fundamental analysis.
• Liquidity: Airbnb's high brand recognition means there are usually good numbers of buyers and sellers in the market, making your trades more efficient.
• Trade and investment options: Whether buying the stock directly or speculating on its price movements, you can trade or invest in multiple ways to suit your goals and the market conditions.

Cons of Airbnb stock

• Volatility: Airbnb stock and the wider travel market have shown volatility in recent years. While this can create opportunities and it's possible to manage your risk, the unpredictable nature of this asset – and stock trading in general – doesn't suit everyone.
• Leverage risk when using derivatives: Leverage is a powerful tool for increasing your exposure when trading CFDs. But it can work against you as quickly as it works for you, so it's important to use ratios you're comfortable with and limit losses where possible.

How to start trading or investing in Airbnb stock

1. Open your Tradu account. Set up an account easily online, then add funds to start trading or investing.
2. Craft your trading strategy. Create personalised goals and a plan to hit them based on your trading time frame, available capital, preferred markets, risk tolerance and more.
3. Study the Airbnb Inc. stock price. Identify its triggers and direction of travel with robust fundamental and technical
4. Open and manage your first position. Invest in ABNB shares directly or trade on its underlying price movements with CFDs. Calculate your ideal position size, manage your risk, and then execute when you judge the time's right.
5. Diversify your portfolio. Ready for more? Use our learning resources to diversify across markets and asset classes from the same account.