Airbnb Must Be Doing Better Than I Thought, Jim Cramer Says
Airbnb. is planning to file confidential IPO paperwork with the Securities and Exchange Commission later this month, the Wall Street Journal reported Tuesday. This means the popular home-sharing platform could go public by sometime before the end of the year.
Airbnb Chief Executive Brian Chesky had originally planned to file paperwork for an offering on March 31, but that plan was derailed by the coronavirus outbreak, Bloomberg reported.
In June, Axios reported that the home-sharing platform had revived the internal conversation about an initial public offering.
Morgan Stanley will lead the offering, with Goldman Sachs Group Inc. also playing a key role, the Journal said, citing people familiar with the matter.
Airbnb was recently valued at $18 billion, down from an earlier valuation of $31 billion.
San Francisco-based Airbnb, which was founded in 2008, has suffered during the coronavirus pandemic as people stopped traveling, causing bookings to plummet.
However, bookings began to pick up in the spring. On July 8, guests booked more than 1 million nights’ worth of future stays at Airbnb listings around the world, the company said, the first time it hit that level since March 3.
The company has also attracted its share of controversy related to crime and complaints about the quality of life in the neighborhoods where it operates.
In May, Chesky told employees in a memo that the company was letting go of a quarter of its workforce.
So why is now the right time for the company to try to go public?