Is Airbnb a unicorn?
What is a
Not long after, in 2011, Airbnb was established in 89 countries worldwide and hit a whopping 1 million nights booked, launching the company into a valuation over $1 billion as well as $112 million in VC investments, making Airbnb a Silicon Valley unicorn startup.
Examples of Unicorns
Some familiar U.S.-based unicorns include Uber, Airbnb, SpaceX, Palantir Technologies, WeWork, and Pinterest.
Unicorn companies are those that reach a valuation of $1 billion without being listed on the stock market and are the dream of any tech startup.
It happens with “horses” (established companies) and “ponies” (ordinary startups) as well. Usually a unicorn is a start up with a valuation of more than US$ 1 Bi. At some point in time Amazon was a unicorn (now it´s much much bigger) but this name was not in use when it happened years ago.
The company has long been a standout among unicorns, a term for private companies worth more than a billion dollars, because it actually turned a profit.
In 2011, Bezos invested in Airbnb via his personal venture capital firm, Bezos Expeditions. That series B funding round has definitely paid off in the intervening years, as ABNB stock is now publicly traded and the firm is valued at more than $100 billion.
In 2022, the company recorded its first full calendar year of positive net income. And it did so in style. Airbnb generated revenue of $8.4 billion and earned net income of $1.9 billion. That's a profit margin of nearly 23% -- among the highest on the stock market.
Market saturation, heightened competition, and the demand for luxury offerings have made short-term rentals less profitable for many hosts. The shift towards mid-term rentals, however, presents a promising alternative for hosts seeking stability.
As of March 2022, there were 607 active unicorns in the United States. The top 10 biggest U.S. unicorn startups by valuation in 2022 included Miro, Goodleap, Fanatics Trading Cards, Kraken, Digital Currency Group, Fireblocks, FTX.US, Gemini, Datavant, and Black Unicorn Factory.
What are the top unicorn companies in the US?
SpaceX, Stripe and Databricks were the largest U.S. unicorns as of February 2024, topping a ranking that looks at the market values of American unicorn companies. This ranking is based on estimates provided by multiple sources that looked at company valuations.
Airbnb and Uber are both unicorn companies that went public with vastly different results.
“Hectocorn or super unicorn” are those companies whose valuations are more than $100 Billion. These companies are mainly tech related. Hectocorn companies are Apple, Google, Microsoft, Facebook, Oracle, SpaceX, Cisco etc.
As evidenced in the 2010s, this unicorn is slang for, usually, a bisexual woman who sleeps with an existing couple composed of a heterosexual male and bisexual woman without the expectation of emotional intimacy. The term implies that such a person is rare—like the unicorn in myth.
The most controversy is about the legality of Airbnb as most cities don't have regulations in place yet, so some people regard Airbnb as running "illegal hotels."
With their penchant for adventure, love for unique experiences, and fast-paced lifestyle, it's no wonder that millennials account for roughly 60% of all guests who have booked on Airbnb.
Airbnbs provide guests with access to full kitchens, larger living spaces, and a unique experience. Often, these rentals come at a much cheaper cost than similar services provided by the hotel industry. Perhaps because of the price and experience, millennials favor Airbnbs over hotels.
Ever heard of Brian Chesky, Joe Gebia and Nathan Blecharczyk? They got very rich from Airbnb. About 4,2 billion US$ each of them.
Airbnb (ABNB) Ownership Overview
The ownership structure of Airbnb (ABNB) stock is a mix of institutional, retail and individual investors. Approximately 48.76% of the company's stock is owned by Institutional Investors, 3.97% is owned by Insiders and 47.27% is owned by Public Companies and Individual Investors.
Ashton Kutcher, well-known for his acting career, is also a savvy technology investor with a keen eye for promising startups. Recognizing Airbnb's potential to disrupt the hospitality industry, Kutcher made a $2 million angel investment in the company in 2011 along with Guy Oseary.
Is Airbnb losing popularity?
Across the US, Airbnb bookings have grown 8.9% over the last year (January 2023- January 2024). However, each market and property is unique. Some markets boom while others bust. And even individual properties can succeed in an otherwise volatile location.
Yet Airbnb, which launched in 2008, is also making more money than ever. Bookings reached an all-time high earlier this year, and the company raked in almost $2 billion in profits in 2022, marking its first full profitable year. Airbnb's stock price is also up dramatically from where it was at the end of last year.
Less Certainty of Income
On the other hand, with Airbnb, your income is sporadic and less predictable, which is another reason many people quit. After all, it's hard to budget and plan for expenses when you're unsure of what your income will be for a certain month.
But it's not because people don't want to travel. Instead, market analysts say many U.S. Airbnbs are sitting empty because so many wealthier people and investors listed short-term rentals on the site, in the wake of a pandemic-fueled boom.
Inconsistent Income
Although you get more nightly rates for short-term bookings, it is not guaranteed that you'll get them every day. There is no guarantee of continuous income on Airbnb.
