How to Buy Airbnb Stock – Make Money Without Renting out Your Room
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Airbnb has led the transformation of the travel industry. In less than a decade, it has become a popular name, giving strong competition to well-established hotel brands for short-term stays. Airbnb has over 5 million hosts and more rooms than the top five biggest hotel chains.
No matter the destination you plan to visit or the type of property you want to stay in, you will find it on Airbnb. Additionally, the property will have a complete kitchen and workspace, making it more cost-efficient than a hotel. After a decade of operations worldwide, Airbnb has become synonymous with travel, and it is the first thing that comes to mind when looking for a place to stay. The company is expanding on all fronts and making its presence felt globally.
If you missed your chance of investing in the initial public offering (IPO), you can still buy Airbnb stock. Let’s take a look at the three steps you need to take.
In this article
Step 1: Finding a broker that offers ABNB stock
Airbnb Inc. is a publicly traded company. The easiest way to buy stocks is through a brokerage account. You will find various brokers in the industry that offer different types of services, but they all have varying fees, account minimums, and commissions. You can check the different platforms and make a call. Considering all the options before committing to a brokerage is recommended. A few brokers allow the purchase of fractional shares, so you can buy a part of the share if you do not have the funds. Let’s take a look at three brokers who are worth considering and offer Airbnb stock purchases.
Related: Best Brokerages for Beginners
Stash
Stash is a user-friendly platform that allows you to buy whole and fraction shares, bonds, and ETFs. Opening an account will not take more than 10 minutes; you can connect it to the funding source. You can buy any stock on Stash. It has two levels of plans for you to choose from.
All the plans come with varying features. The basic plan is worth $3. The highest level plan of $9 will give you two custodial accounts to invest for your kids. It also provides monthly market insight reports. With Stash, you enjoy a debit card account and a life insurance policy worth $1,000.
Pros and cons
Pros
- Offers fractional shares
- Easy-to-use interface
- Start investing with $3
- Retirement and custodial accounts available
Cons
- No automatic rebalancing
- The ETFs come with a high expense ratio
Robinhood
Buying Airbnb stock is easy with Robinhood. It is free to sign up and provides robust features with a monthly fee of $5. It also includes access to Morningstar research to help you pick a stock. Robinhood allows the purchase of fractional shares so you can own any stock without arranging for many funds. The stock purchase is commission-free; you can do pre-market and after-hours trading. You can open the account for free, and there is no minimum balance amount requirement.
Pros and cons
Pros
- No fee
- No minimum deposit required
- Offers fractional shares
- Offers cryptocurrencies
Cons
- No bonds or mutual funds
- No retirement or custodial accounts
Webull
You can open a Webull account within 10 minutes. It charges 0% commission on trades and offers many benefits, including powerful data analytics. You can invest in stocks, ETFs, options, and cryptocurrencies. You also have access to extended hours and pre-market trading.
Pros and cons
Pros
- Zero commission
- User friendly
- Offers cryptocurrencies
- Access to full extended hours trading
Cons
- Does not offer fractional shares
- Does not allow you to invest in all types of securities like bonds or mutual funds
- Commission free stock trading.
- No account minimum.
- Trade stocks, options, ETFs, and more.
- First stock free.
Step 2: Research AirBnB shares
Airbnb is a San Francisco-based company that operates an online lodging marketplace. It mainly operates homestays for vacation rental. Founded in 2008 by Brian Chesky (CEO), Joe Gebbia (CPO), and Nathan Blecharczyk (CSO), the platform has grown over the years and is accessible through the web and mobile applications. Airbnb does not own any listed properties; it lists the properties others own on the portal and allows travelers to book them for their stay.
The company makes profits by receiving a commission with each booking. Its original name was AirBedandBreakfast.com, and Airbnb is its shortened version.
Today, Airbnb is one of the top companies in the market, and many hotel chains feel the threat. By 2009, the company had 10,000 users and 2,500 listings on the platform. Airbnb has consistently grown since 2009 and has expanded worldwide. It opened offices in different countries, and by 2011, its investment partners included Ashton Kutcher and Guy Oseary.
The company became profitable for the first time in the second half of 2016, and Airbnb’s revenue significantly increased in 2016. It generated a profit of $200 million in 2018 and turned into losses in 2019. The company has also made several strategic alliances, allowing its expansion and market growth.
Airbnb is listed on NASDAQ under the ticker ABNB and debuted as a public company on Dec. 10, 2020. Airbnb's IPO price was $68, and it raised $3.5 billion in the IPO. The share price has surged since then and saw a high of $219 in February 2021. More recently, though, it too has been caught up in market volatility and was trading at $157.90 per share as of May 9, 2024.
Airbnb price history
Investing in an IPO is a great opportunity to capitalize on a company's growth, and Airbnb is no exception. The company has grown and grabbed a large market share over the years. If you had invested $1,000 in Airbnb in the IPO in 2020, you would have received 14 shares at the IPO price of $68.
Airbnb dividend information
Airbnb has not paid a cash dividend at any point.
Best features of Airbnb stock
Airbnb enjoys a unique business model. Airbnb has a business model that creates a new way to vacation. It offers several destination possibilities and accommodation options. It also allows homeowners to rent their property and earn extra cash. Hotel groups are already feeling the heat and seeing Airbnb as a threat. With several accommodation options worldwide, Airbnb has become a part of many travelers' itineraries. It has competitive pricing and offers various facilities and a bed and breakfast.
Stellar fundamentals. Airbnb reported stellar first-quarter 2024 results. Revenue increased 18% yearly to $2.14 billion, and gross booking value hit $22.9 billion. The company generated a net income of $264 million. It ended the quarter with highest number of active listings yet.
Airbnb benefits from a remote work culture. Consumers are also heading toward small cities and towns, and this is a huge change brought about by the pandemic. People are also choosing to travel outside the peak season and stay at one location for longer. This is a shift towards more meaningful travel. Revenge travel will also continue to remain a major trend in 2024.
Step 3: Open a brokerage account & buy Airbnb shares
If you are ready to open an account and invest in Airbnb stock, you can start with Webull. When you open an account with Webull and deposit $100, you can choose two stocks to buy, and you can purchase Airbnb stock immediately. Let’s take a look at what is involved in the process.
Start by going to the Webull website and clicking on Sign up. Here, you will have to provide your email ID and password. You can register using your Email ID or mobile number. You will receive a verification code; once you verify it, you can set up the account.
Once you click on Open account, you will be asked to provide basic information. This includes details like name, address, birth date, nationality, social security number, and employment. You may also have to answer a few security questions to ensure you can trade.
Now, you need to choose the type of account you are keen on opening. The broker will verify your information and approve the application. You can review the information and agree to the terms and conditions.
Opening the account will take less than 10 minutes. You now need to fund the account, which you can do by transferring funds from your bank account. Start investing in stocks right away!
There are two ways to place stock trades: the limit price and the market price. When you choose the limit price, you set the price at which you want to buy the stock. Whenever the stock hits the limit price, it will be purchased on your behalf. You do not get to set the price when you opt for the market price. It is purchased at the current stock price on the stock exchange.
FAQs
How much were Airbnb shares when the company first went public?
Airbnb shares were priced at $68 in the IPO in 2020.
How much does it cost to buy Airbnb shares today?
Shares closed at $157.90 on May 9, 2024.
Does Airbnb pay dividends?
Airbnb does not pay any dividends.
What is the minimum number of Airbnb shares that I can buy?
You can buy Airbnb shares for as little as $1 depending on the brokerage you choose. It is possible to buy fractional shares.
- Commission free stock trading.
- No account minimum.
- Trade stocks, options, ETFs, and more.
- First stock free.
The bottom Line
Airbnb is a well-known company that can benefit from revenge travel. If you are looking for growth stocks for long-term investment, Airbnb is a great choice. It will report impressive numbers in the coming years, taking the stock to new highs while threatening hotel businesses. It is one stock you can buy and hold for the long term.
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Editor
Vandita Jadeja is a financial writer and editor at Joywallet. She loves to read and write about money and brings a decade of experience from the financial industry.
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