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Airbnb IPO: What Jim Cramer Needs to Know

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Airbnb has submitted paperwork for an IPO, the company announced on its blog today.

The company filed a draft S-1 to the Securities and Exchange Commission on Wednesday. The IPO is expected to take place after gaining the necessary regulatory approvals, and will be subject to market conditions.

"The number of shares to be offered and the price range for the proposed offering have not yet been determined," Airbnb wrote.

The travel marketplace had been expected to go public sometime this year, but the damaging effect of COVID-19 on the travel industry reportedly delayed those plans.

As the pandemic spread in the spring, and travel restrictions went into effect, Airbnb's bookings dropped by around 40% or more, depending on the market, and CEO Brian Chesky said in a statement in May that the company expected its total revenue to drop by more than half in 2020.

In response, Airbnb laid off 25% of its roughly 7,500 employees and slashed other expenses, such as investments in non-core businesses 

Watch the video above for what Jim Cramer wants to know about the S-1.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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