After much anticipation, short-term rental giant Airbnb made its public debut in December with a splash. Over the course of the month, the company’s stock price more than doubled, and Wall Street analysts have now indicated their doubts for the stock to grow much further, according to a report by CNBC.

In fact, only one-third of more than 20 analysts who put out reports on Airbnb at the start of 2021 expect the stock to see gains from its current valuation.

Airbnb began selling shares at $68 during its debut, and in the first day of trading, those shares soared a whopping 113 percent to close at $144.71. As a result, the company earned a value of $86.5 billion, or more than $100 billion, based on a fully diluted share count. However, since then, the stock has remained relatively flat until Monday when it dropped 5.2 percent to $139.15.

At the start of the year, more than 20 analysts began coverage of Airbnb, according to FactSet and CNBC. While about two-thirds of those analysts recommend holding the stock, five out of 18 analysts with price targets anticipate the company’s shares will drop.

Deutsche Bank and Stifel issued the most bearish reports, placing targets of $130 on the company’s stock. Stifel attributed that estimate to a discounted cash flow analysis for Airbnb that incorporated both cost of capital and growth rate factors.

At the opposite end of the spectrum, however, Needham had the most bullish report, estimating the company’s shares to reach $200 in the next year. That estimate, Needham analysts said, was based on the prediction that the alternative accommodation market could grow by five-fold to ten-fold between now and then, and may likely benefit from pent-up demand for travel in the wake of the pandemic.

“Key upside drivers would be accelerating share gains in the U.S. and COVID abating sooner than expected in ’21, in our view,” Needham analysts wrote in their report. “Our primary downside concerns are COVID turning into an incremental multi-year headwind and/or stagnating traffic growth that would cause the company to invest more aggressively in customer acquisition, presumably through Google.”

Email Lillian Dickerson

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Real estate news and analysis that gives you the inside track. Subscribe to Inman Select for 50% off.SUBSCRIBE NOW×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription