How to Buy Airbnb Stock (ABNB)

Introduction

If you are planning to bet on a travel or leisure business, Airbnb is the most deserving platform. With a continuous expansion in the hotel and hospitality markets, Airbnb offers a great opportunity to maximize your profits. As of December 2023, Airbnb had 640 million outstanding shares. The market capitalization of ABNB was $90.71B, and approximately 5.44 million ABNB shares were traded. It is currently the world’s 161th most valuable company. 

So you might be tempted to mark your presence on such a lucrative platform. But how do you buy the Airbnb stock? Here, you will find a complete guide to the right way of buying ABNB, including some great suggestions to navigate this journey successfully.

So you might be tempted to mark your presence on such a lucrative platform. But how to buy Airbnb stock? Here, you will find a complete guide to the right way of buying ABNB, including some great suggestions to navigate this journey successfully.

Highlights and Key Takeaways

• Airbnb offers a lucrative chance to capitalize on the growing short-term rental business.

• You need a brokerage account to start trading Airbnb stocks.

• Monitor the performance of your stocks with Airbnb’s latest news, charts, and reports. 

Understanding Airbnb as an Investment

Now that we know a little about the company, let’s try to understand Airbnb as an investment and learn how to invest in stocks.

Why Invest in Airbnb?

With more than 4 million hosts and more than 1.5 billion guest arrivals since the company was launched. Airbnb has grown from a brand to a household name. Anyone who has rental property will think about investing in Airbnb stock. Why? This is because Airbnb’s short-term rental properties have shown tremendous growth in the past. After starting at $68 per share during its initial public offering, ABNB skyrocketed by an impressive 223% in a little over two months. 

By February 11, 2021, the Airbnb stock had reached an all-time high rate of $219.94, listed on the Nasdaq as a large-cap stock. Airbnb’s shares consistently reached new highs in the subsequent years. So, what are the advantages of investing in such a lucrative platform?

• It provides a great chance to capitalize on the growing vacation rental industry. 

• The platform has continuous expansion and a dominant market position.

• Investing in Airbnb stocks offers liquidity and flexibility, unlike owning rental property.

• You can easily sell or buy shares based on market conditions. 

• Due to its dominant market position, there is hope of future returns. 

Risks Associated With Investing in Airbnb

While the growth potential is compelling, it’s essential to acknowledge the associated risks. Here are a few risks you must keep in mind while investing in Airbnb stocks:

Fierce Competition

Today, Airbnb is operating in more than 100,000 cities with around 6,000,000 listings.The platform has more than 150 million users worldwide.  Since Airbnb was launched, the short-term rental market has become aggressive, with more and more competition getting into the mainstream. Some of Airbnb’s notable competitors include Expedia, Tripadvisor, Booking.com, Vrbo among others. 

Legal Airbnb Issues

Many areas across the United States have banned Airbnb investments to promote long-term leases and reduce short-term rentals. In some areas, Airbnb hosts have to get special permits and licenses. Hosts who do not comply with their state or city regulations, can encounter hefty fines and even imprisonment. 

Market Volatility

Like any other investment market, Airbnb is not without its volatility and risks. From late February to mid-May of 2023, the stock didn’t perform as well as expected. However, in July, things took a positive turn. During that month, Airbnb’s shares reached new highs for the year, which was seen as a positive sign. 

Also, investing in Airbnb stock requires a certain level of knowledge and expertise in  market trends and technical analysis. WIthout proper understanding of these factors, you may not be able to make informed decisions. 

As of today, the stock is displaying fluctuating behavior, similar to what’s happening with major stock market indexes. So, as an Airbnb investor, you must be aware of the inherent volatility of the platform.

How to Buy Airbnb Stock

Choosing a Brokerage

A brokerage account is your gateway to the stock market. So, it‘s really important to choose the best brokerage firm for your Airbnb stock investments. Your brokerage should meet your needs and investment goals. Once you find the right brokerage firm, this will be your first successful step into the stock market. 

Factors to look for in your brokerage firm include:

• Trading fees: Ensure the fee imposed by a brokerage when you buy or sell Airbnb stocks is reasonable. 

• Platform usability: Evaluate how user-friendly and easy it is to navigate and operate the trading platform provided by the brokerage.

• Customer service: Make sure your selected brokerage firm offers exceptional customer service. 

Placing a Stock Order

The next step is to place your order. You can log into your brokerage account or investment app to place the order. Then, you will need to enter Airbnb’s ticker symbol (ABNB) along with the price you want to invest or the number of shares you want to purchase.

Here, you will come across two options: market order and limit order. 

• Market Order: By default, you will enter into a market order, which means you are going to purchase Airbnb stocks at the current market price. 

• Limit Order: You will also have the option to select a limit order that restricts you from buying stocks beyond a certain threshold. If Airbnb stocks exceed the threshold, you won’t purchase the shares. 

Limit orders can cover you in times of wild price swings. But you should carefully choose your option based on your investment goals. So what’s next? Airbnb is traded on the Nasdaq, so your trades will be fulfilled during its business hours (9:30 a.m. until 4:00 p.m. ET, Monday to Friday). However, some brokerages have access to pre-market or after-market extended hours.

Monitoring Your Investment

Understanding Stock Performance

Now that you know how to buy Airbnb stock, you are not done yet. As an investor, you should also monitor your Airbnb stocks. You should track how your stock prices change over time as compared to major benchmarks, such as the S&P 500 and Nasdaq 100. Besides, keep an eye on how the industry is performing with the help of stock charts and financial reports. This will help you understand how financial situations evolve or change over time. 

When To Sell Your Stock

Airbnb stock has performed well so far in 2023. Investors attained 65% annual return in 2023. But the decision whether or not to sell your Airbnb stocks depends on several factors, such as:

Achieving Investment Goals: If you’ve reached your financial objectives or the stock has performed exceptionally well, selling to secure your profits might be a prudent move.

Changes in Company Fundamentals: Keep an eye on Airbnb’s business developments. If there are significant changes in the company’s fundamentals, like leadership shifts, strategic pivots, or financial challenges, it might be a signal to reassess your investment.

Market Conditions: Sometimes, broader market conditions can impact individual stocks. If there’s a downturn or signs of instability, consider selling to protect your investment.

Better Opportunity: While Airbnb stock has strong potential for growth, this does not mean that it will be the best performer at every point. You may find another stock that has better growth prospects. You can sell your Airbnb stock to purchase the new one. However, it is pertinent to conduct extensive research.  

How To Invest in Airbnb With Funds

Airbnb has inherent volatility, as we have discussed before. So, the risks of losses will always be there, no matter how great the market is performing right now. So, one way to prevent a major setback is to expand your investment horizon. For instance, you can invest in index funds or exchange-traded funds (ETFs) that include Airbnb shares. The good thing about index funds is that they can be purchased at low cost and you do not need to possess much financial knowledge.

This way, you can mitigate the impact of poor performance from one stock, like Airbnb, as gains in other holdings may offset potential losses. ETF brokers can help you manage the funds that trade on exchanges, generally tracking a specific index.

Conclusion

As we can see, investing in Airbnb will open doors for great, exciting possibilities. If you want to step into the short-term rental market, Airbnb is the biggest platform for investment. Currently, the market is fluctuating, but overall, its performance is impressive. 

So, if you are wondering how to buy Airbnb stock, this comprehensive guide will help you. But keep in mind that selecting the right brokerage is your key to excelling in the stock market. So trade your stocks with a regulated broker and start your journey to financial growth.

FAQ

How Can I Purchase Airbnb Stock?

You can easily purchase Airbnb stocks using your brokerage account. If you do not have one, choose a reliable broker, set up your account, and place your order to purchase Airbnb stocks. 

Does Airbnb Pay Dividends?

No, Airbnb does not pay any dividends currently. This means it’s reinvesting all the profit in the business. 

Are Airbnb Shares a Good Buy?

Currently, the consensus rating for Airbnb stocks is “hold.” However, the decision to buy the stocks depends on several factors, such as individual risk tolerance, market conditions, and investment goals. It’s advisable to conduct thorough research or consult with a financial advisor before making investment decisions.

What Is the Best Stock To Buy Right Now? 

For insights into the top stocks to buy, check out this link. Keep in mind that market conditions can change, so staying informed is key.