Airbnb stated on Tuesday that they intend to sell shares between $44 and $50 a piece in its IPO. This target would put their valuation at almost $35 billion, $5 billion more than their original $30 billion valuation.
Will Airbnb be able to turn things around
Airbnb stated in their S-1 filing that revenue fell $2.5 billion during the first 9 months of 2020. This is a loss of $1.2 billion when compared to $3.7 billion during the same time period of 2019.
“We believe that the COVID-19 pandemic reinforced that travel is an enduring human desire, even in the face of challenges,” the company wrote.
Airbnb also emphasized their total addressable market is a whopping $3.4 trillion. This is including $210 billion for long-term stays, $1.4 trillion for experiences, $1.8 trillion for short-term stays.
“While the current travel market remains unpredictable, we believe estimates made prior to the COVID-19 pandemic to be the best representation of our long-term travel opportunity,” Airbnb wrote.
AirBnB’s revenue plummeted in the first nine months of the year when compared to the same period last year. Despite this, in the last three month period, they are seeing bookings recover as people are beginning to take road trips to remote areas.