Airbnb IPO

[PDXTabs]

So, Airbnb starts trading on 12/10/2020. If I wanted to move a very small portion of my portfolio (currently 100% index funds) into Airbnb, is there any strategy at all for when to buy? The first day of trading? This would be on the order of $1K worth of stock.

[Papa bear]

So, Airbnb starts trading on 12/10/2020. If I wanted to move a very small portion of my portfolio (currently 100% index funds) into Airbnb, is there any strategy at all for when to buy? The first day of trading? This would be on the order of $1K worth of stock.

I could be convinced to throw some extra cash into Airbnb. 


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[cool7hand]

I think the lack of responses is because most people here would look at your question as how to time when to market time. There's nothing wrong with you deciding that investing in Airbnb's IPO is what you want to do, but just understand it for what it is. Perhaps you do and that is why you are only throwing a small portion of your holdings this way. Good luck!

[PDXTabs]

Yes, but there are just special considerations around IPOs because of the way that the initial round of investors buy their shares and some shareholders have a set lock-up period before they can sell.

But I looked at a few tech IPOs and there isn't really a pattern. Some of them fall on the first day of trading, some of them rocket higher. Some of them fall after the initial lock-up period and some of them don't.

For sure, I will move at most 0.5% of my portfolio to ABNB. With that amount it's mostly for entertainment unless their stock does very well.

EDITed to add S-1.

[PDXTabs]

I did buy some at $143.50/share today. Less than 1% of my portfolio and less than one month worth of 401K buys.

With that said, it seems really expensive right now and I would not be surprised if it just trades sideways for the next two years. But I can live with that as I don't need to sell anything for the next 9+ years.

[hodedofome]

I bought some today, I’m down on it but did pretty well buying the AI IPO yesterday. We’ll see what the future holds for both but I’m pretty bullish on AirBnb long term and C3.ai CEO has had a pretty good track record.