Why Airbnb Stock Soared 25% in January

After its blockbuster IPO in December, shares of Airbnb (NASDAQ: ABNB) gained an additional 25.1% in January, according to data provided by S&P Global Market Intelligence. Many Wall Street analysts started covering the stock for the first time last month, and a fair number of them initiated that coverage with rosy outlooks, exciting investors and sending the stock higher. 

Ahead of Airbnb's initial public offering in December, the company had anticipated pricing the shares first in the $44 to $50 range, and then closer to the event in the $56 to $60 range. But due to strong demand, that number was raised to $68 per share. And when the stock hit the open market, the price soared to $144 per share the very first day, making it one of the largest IPOs of all time. Apparently, investors still had a lot of appetite for one of the largest travel platforms in the world, despite the damage the COVID-19 pandemic did to its business in 2020.

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Source Fool.com