Airbnb more than doubles in biggest 2020 U.S. IPO

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Airbnb hosts from around the world rang their door bells Thursday to celebrate the company’s stock market debut and the biggest IPO of a U.S. company this year.

Shares of the online home-rental company opened at $146, which is more than double its $68 IPO price.

The stellar market debut marks an impressive turnaround. Like all travel-related businesses, Airbnb suffered a sharp drop in bookings and in increase in cancellations when the global health crisis grounded all travel to a halt.

But when travel restrictions eased, travelers turned to Airbnb and its listing of private-home rentals, seeing that as a safer travel option than commercial hotels. Revenues rebounded in the third quarter, and thanks to cost cutting, Airbnb posted a surprise quarterly profit.

Over the years - it has also had to overcome data privacy concerns, rentals being used for unauthorized property-damaging parties, and complaints of discrimination by Black travelers.

As part of the Nasdaq’s opening bell ceremony CEO Brian Chesky acknowledged the challenges Airbnb had to overcome to get to this day.

"To our investors, thank you for believing in us, even when it wasn't always the obvious thing to do. You know, Airbnb is rooted in the fundamental idea that people are good and we're in this together. In the end, we are not just a company, but a community. And so now, it makes sense that we take Airbnb public so we can share Airbnb with more of the world."

But the competition is stacking up.

Hurting for cash, traditional hotel operators have noticed Airbnb's success and have started to offer their own home rentals.

Wall Street, however, is betting Airbnb will continue to dominate the space. With Thursday's surge - Airbnb has a market valuation of more than $100 billion - that's more than the Marriott , Hilton and Hyatt hotel chains combined.