The Close: Airbnb Soars on IPO Day
While the Dow and S&P finished lower than yesterday, the NASDAQ pushed ahead in the green due to a gain by Apple and Netflix. Why has the market been lagging the last few days? The news I had previewed yesterday deterred markets again. While the jobless claims data was as suspected, it did not push investors to hit the sell button just yet. Senate majority leader Mitch McConnel had rejected the aid bill proposed by house democrats, and will ajoun until next week. This is the same $908 billion dollar bipartisan deal I had discussed a few days ago. The jobless claims number was significantly higher than expectations, marking 853,000 jobless claims. The estimate was 730,000. This marks the highest jobless claims number since September.
Photo: Media from Wix.com
Another bright spot in the market today was similar to yesterday. No, you aren’t having Deja Vu, while indexes lagged, an IPO overshadowed their decline. Airbnb, $ABNB, soared on their first day of trading, posting a +112.81% increase in their IPO price. The rental company had more than doubled their opening price, which was at $68 per share, closing at $144.71 per share, up by 76.71 points.
The Dow Jones industrial Average lagged today as previously stated. The Dow closes at 29,999.26, down by 69.55 points, or -0.23%. While $DJI closed lower, it did post a nice rebound from their early am lows. The S&P was not down too much, as it closed at 3,669.10, down -4.72, or -0.13%. While those two were down, the NASDAQ posted gains as it closed at 12,405.81, up by 66.86 points, or +0.54%.
While it may be nice to look at these IPOs and think to yourself, “These would be some nice gains for my portfolio”, think again. IPOs have typically performed this way this year, and last year. They open strong initially, then lag after that. One exception to that would be $BYND, which is up 5.5 times would their IPO price opened at.