AirBnb is a popular short-term rental technology company that created a lot of buzz when it went public in December 2020. Founded in 2008 by Brian Chesky, Nathan Blecharczyk and Joe Gebbia, the company has seen its stock price jump over 20% since its initial public offering (IPO), despite the coronavirus pandemic’s negative impact on global travel. If you want expert investing advice, a financial advisor can help you buy stock and other investments. Let’s break down the best options for investing in AirBnB.
How to Buy AirBnB Stock With a Brokerage Account
AirBnB trades on the Nasdaq exchange under the ticker symbol ABNB and can be purchased online through a broker. If you don’t have a brokerage account already, you’ll need to set one up. There are plenty of broker options and robo-advisors to choose from, so it’s important to do your research and understand how fees and minimums vary from brokerage to brokerage.
Once you have opened an account, you’ll need to decide how you want to purchase your shares of AirBnB stock. With a market order, you can buy AirBnB at the stock’s current market price. A limit order, on the other hand, allows you to set a minimum and maximum price at which you’re willing to purchase or sell the stock.
It’s also worth noting that you can still buy a piece of a company even if you cannot afford to purchase a full share of stock. Apps like M1 Finance and Stash allow you to buy fractional shares of stock, which can come in handy in the event you’re interested in owning expensive blue chip stocks that you may not otherwise be able to afford.
How to Buy AirBnB Stock With a Financial Advisor
Buying AirBnB stock through a broker isn’t your only option for owning a piece of the company. If you don’t fashion yourself as a do-it-yourself investor, you may want to consider working with a financial advisor. Beyond helping you buy AirBnB stock, a financial advisor can help construct an investment portfolio tailored to your specific needs and time horizon. Whether you’re saving up to buy your first home or planning for retirement, a financial advisor can provide expert insight and help reach your financial goals.
AirBnB Company Overview
Since launching in 2008, AirBnB has helped revolutionize the short-term rental industry and fundamentally change the way many people travel. Today, tens of millions of bookings are made each year through the company’s online marketplace, which allows property owners to share their homes or rent them out entirely.
As of September 2020, the platform had 5.6 million active listings in 220 different countries and regions. In 2016, the San Francisco-based company began offering AirBnB Experiences — tours, activities, classes and adventures hosted by local experts. Those offerings expanded during the coronavirus pandemic to include online experiences.
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AirBnB Financial Profile
With listings in over 10,000 cities worldwide, AirBnB has become one of the leading names in the short-term rental industry. But the platform was not immune to the pandemic-fueled economic downturn, which hit the travel industry especially hard. AirBnB booked $3.4 billion in total revenue in 2020 — 30% less than in 2019. However, the company had previously projected its revenues would fall well short of the $3.4 billion mark amid the pandemic and has also seen its stock trade well above its opening price.
After a $68 share price was set at the company’s IPO on Dec. 9, 2020, AirBnB shares began trading on the Nasdaq exchange the following day at $144. The stock plummeted to it’s all-time low ($124.80 at closing) on its fourth day of public trading but quickly rebounded, reaching an all-time closing high of nearly $217 less than two months later. The stock was trading at almost $178 per share in early April 2021.
Should I Buy AirBnB Stock?
Like any stock, AirBnB shares can be susceptible to volatility and buying them carries some inherent risk. While the company’s 2020 revenue dropped from a year earlier, the travel industry is anticipating a rebound in the post-pandemic world, perhaps making AirBnB stock a viable buy for you.
But if you’re new to investing, you should avoid putting all of your eggs into one basket. In addition to helping you buy AirBnB stock, a financial advisor can compile a diversified portfolio that matches your risk tolerance and time horizon. If you’re a go-it-alone investor, buying index funds or exchange-traded funds can also add diversification to your investment portfolio.
Tips for Investing
- Ready to find a financial advisor? SmartAsset’s free matching tool can connect you with up to three professionals in your area. Get started now.
- Use our online brokerage comparison tool to see all the major online brokerages, fees, minimums and other key info.
- Our investment calculator is another useful tool to use as you put together a portfolio, decide how much to invest and for how long.
Photo credit: AirBnB, ©iStock.com/warrengoldswain, ©iStock.com/Drazen_