Airbnb Raises IPO Price as Dot-Com Bubble Record Falls

The home-sharing service Airbnb (NASDAQ: ABNB) is set to begin trading on Thursday, December 10.

The initial filing indicated a share price of $44–50 per share. However, due to strong demand, the company is raising the share price to between $56–60.

This price hike comes on the heels of a similar announcement on Friday, December 4. The hotly anticipated IPO DoorDash (NYSE: DASH) hiked its price from $75–85 to $90–95 per share.

The COIVD-19 pandemic hit travel stocks hard. But with vaccines in view, investors are anticipating strong demand for travel in the coming year.

Airbnb is in a prime position to capitalize on the demand — offering travelers an opportunity to stay away from crowded hotels.

Both Airbnb and DoorDash expect to raise as much as $3.1 billion each in their respective IPOs this week.

2020 has been a blockbuster year for IPOs.

The previous record was set in 1999 at the height of the dot-com bubble when new IPOs raised $108 billion for the year.

2020 is expected to top $140 billion.

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