Airbnb will go public at $68 per share after roaring success of DoorDash initial public offering

Investors are wondering if Airbnb can replicate the phenomenal response to another San Francisco app-based company that began trading yesterday.

DoorDash closed at US$189.51 after going public on the New York Stock Exchange. 

The food-delivery service's shares were priced at US$102 the night before, marking a whopping 85 percent increase.

Today, Airbnb shares are trading for the first time on NASDAQ under the symbol ABNB.

The home-sharing company's stock has been priced at US$68, which is well above a range previously listed on IPO investment manager Renaissance Capital's website.

The Oracle of Omaha, multibillionaire investor Warren Buffett, has never been a fan of IPOs, even though people sometimes strike it rich by jumping in early.

High-profile market commentator Jim Cramer, on the other hand, sees good days ahead for Airbnb after the COVID-19 vaccine helps beat down the pandemic.

The 12-year-old company is headed by its cofounder, Brian Chesky.

Regulatory issues could hamper performance

Fairbnb Canada director Thorben Wieditz recently wrote that Airbnb was "facing declining growth rates in gross bookings and revenues" before the pandemic as cities were taking steps to protect rental-housing stock.

Wieditz suggested in the same article that Airbnb wasn't being completely up-front with investors on the risks posed by increasing regulation at the municipal level.

In Burnaby, for example, the municipal government recently prohibited tenants from renting Airbnb suites as part of its new regulatory regime.

In 2017, Vancouver became the first Lower Mainland city to legalize and regulate Airbnb and other short-term rentals.