Jim Cramer reveals ideal price to buy Airbnb shares: 'I want you to own Airbnb'

“If you can get the stock for $68 or less this week, I’d back up the truck,” the “Mad Money” host said. Subscribe to CNBC PRO for access to investor and analyst insights: https://cnb.cx/2Vtntx6

Airbnb has a chance to post substantial growth next year and the stock is worth buying when the company makes its long-awaited debut to the market Thursday, CNBC’s Jim Cramer said Tuesday.

Investors can afford to be patient, however, as the vacation home rental company continues to face pandemic headwinds, he said.

“I want you to own Airbnb because it’s set to have a terrific year starting next March,” the “Mad Money” host said. “That means you’ve got a few months to make your move, no rush.”

Airbnb, the online lodging marketplace that has disrupted the hotel industry, plans to go public on Thursday, ending a volatile year for the company on a high note. The company considered earlier this year pushing back a public offering to 2021 as the coronavirus outbreak spread globally.

Cramer, anticipating a post-Covid-19 world, is banking on Airbnb bookings to rebound starting in the first half of next year.

Airbnb on Monday set a new IPO range of between $56 and $60 per share, an increase from a range of $44 to $50 per share. The updated range represents a $42 billion valuation for Airbnb.

“If you can get the stock for $68 or less this week, I’d back up the truck. If you can get it for less than $85, I’m granting you a small position,” Cramer said. “Any higher, though, and I’m going to have to say you’ve got to keep your bat on your shoulder and wait for a better pitch.”

Cramer reckons investors could get a better buying price if the stock sells off after Airbnb reveals results in its first public quarterly report, which could shake out some shareholders who bought in on the IPO.

Airbnb has brought in $2.52 billion of revenue through Sept. 30, a more than 30% decline from the $3.7 billion it recorded in the first nine months of 2019. The lost business can be attributed to the drop in travel demand during the pandemic.

Airbnb grew annual revenue by more than 31% in 2019, though the growth rate has slowed over the years, according to the prospectus it submitted last month.

An emergency capital raise in April valued the company at $18 billion, which was half of what it was valued in 2017. The company laid off 25% of its workforce in May.

The future remains uncertain, with Covid cases rising exponentially. Cramer forecasts that Airbnb will have a rough fourth quarter, in keeping with 2020, and that the effects of low travel demand will linger in the first quarter of 2021.

“By the time April rolls around, millions of people should be vaccinated … and I have to believe we’ll see a recovery in the travel stocks in a rapid fashion,” Cramer said. “This business will look great in 2021, especially when you layer in all the cost cuts they’ve put through.”

“But the next few months could be pretty rough, especially if IPO investors freak out when they see Airbnb’s first quarter out of the gate.”

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50 Comments

  1. StonkSlayd on December 16, 2020 at 9:32 pm

    useless. wrong everytime. why doesnt anyone watch his.

  2. Jw Wa on December 16, 2020 at 9:33 pm

    Time for the daily coin flips by cnbc

  3. Duke James on December 16, 2020 at 9:34 pm

    It’s supposed to open at $150~. Crazy. But I think it could end the day even higher, around $200. Absolute mental market right now.

  4. steve o on December 16, 2020 at 9:36 pm

    Guess it’s time to short air bnb… thanks for the advise Cramer

  5. billdoa on December 16, 2020 at 9:37 pm

    Cramer this is a new Era of investors. I remember when you didn’t like Tesla now you’re their biggest cheerleader 👭

  6. TheLiving Darkness on December 16, 2020 at 9:37 pm

    I want to buy this and DoorDash but both are too expensive and I’d rather look into something that might make the headlines next year. I gotta wait until it gets down to like $50 a share.

  7. John Smith on December 16, 2020 at 9:38 pm

    If Cramer says buy it, I’m shorting it.

  8. Chris Sinclair on December 16, 2020 at 9:40 pm

    A lot of Hedge Fund companies that pre bought AirBNB IPO shares just doubled their cash registers at the expense of the small investor……once again

  9. Segbemba Murray on December 16, 2020 at 9:41 pm

    So true. I want this stock but its to hot. I’ll buy when things cool down

  10. Michael Blake on December 16, 2020 at 9:41 pm

    Bitvest24 were absolutely brilliant in helping my girlfriend and I invest our bitcoin. We have previously dealt with Ben who was excellent, although this time we were advised by Jonathan. Jonathan was knowledgeable, supportive, adaptable and was able to cut through the jargon and provide succinct, yet detailed options for us to consider and he importantly ensured that we understood the decisions we were making and we received our payments.

  11. keto6789 on December 16, 2020 at 9:42 pm

    Best thing is to forget picking stock and just buy 2 etfs. ARKK and FTEC and you’ll be all set. Maybe add an sp500 index fund also. Also QQQ is good. Then you just keep adding your money and you can sit back and relax and not stress out over all your separate stocks all the time.

  12. Random Hobbies on December 16, 2020 at 9:43 pm

    Haha what a joke 68 dollars.. It started at 146 for the peasants.. Sharks got it at 68 and doubled their money 😂

  13. Chris Choir on December 16, 2020 at 9:44 pm

    cRaZy jIm

  14. Matthew Kilgore on December 16, 2020 at 9:46 pm

    WAYYYYYYYYYYYYYYYYYYYYYYY OVERVALUED!

  15. Tigermantt on December 16, 2020 at 9:48 pm

    Lmao garbage Cramer at it again.

  16. D&D Finance on December 16, 2020 at 9:50 pm

    Just buy it no matter what 😂

  17. Sylvester Jacob on December 16, 2020 at 9:51 pm

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  18. Serialist on December 16, 2020 at 9:54 pm

    All IPO’s should start at a fixed rate under 60$. The last two have been ridiculously high. La food delivery service and a hotel anyone can own. Maybe Pizza Hut and dominions should start a ipo for their drivers, might be valued higher than the company. Watching your stocks grow is the best part. When its overvalued from the start, it’s kinda ridiculous.

  19. Alaa Faraag on December 16, 2020 at 9:54 pm

    Damn it’s 150 now lol,,

  20. Hiei2k7 on December 16, 2020 at 9:54 pm

    139. Catch up, Jimmy.

    /r/wallstreetbets gang

  21. Mauricio Espino on December 16, 2020 at 9:56 pm

    Cramer is right.

  22. Chad Freeman on December 16, 2020 at 9:56 pm

    That was only for institutional investors; I saw $144

  23. Christopher Armstrong on December 16, 2020 at 9:58 pm

    Every time I watch Cramer I’m reminded of this. *”You always wanted the biggest, baddest, beard, baby.”* https://youtu.be/faco85RmD3M

  24. dA Leester on December 16, 2020 at 9:59 pm

    👀

  25. Tammy Morris on December 16, 2020 at 9:59 pm

    Agreed

  26. Metal Bum on December 16, 2020 at 10:00 pm

    Buying Airbnb is not gonna work it’s valuations way to hogh

  27. Keenan Cottone on December 16, 2020 at 10:02 pm

    at 60 lol

  28. Coin Bureau on December 16, 2020 at 10:04 pm

    investing in crupto now is really cool especially with the current rise in the market for now

  29. michael jordan on December 16, 2020 at 10:09 pm

    I remember when he told us the same thing about the Lyft stock and it went down about 50% after that

  30. garyseeseverything on December 16, 2020 at 10:09 pm

    Airbnb the ghetto overpriced hotel business. IPO junk fed marking everyone rich

  31. Metal Bum on December 16, 2020 at 10:09 pm

    I’d buy Airbnb under $60 but no way over $100

  32. Kenny Nguyen on December 16, 2020 at 10:09 pm

    Right now its far away from 60…lol

  33. TTVRickyRich on December 16, 2020 at 10:11 pm

    All the people complaining in the comments he said hold off to buy 😂

  34. J will on December 16, 2020 at 10:13 pm

    Airbnb is one of those disrupter business. It’s going to reshape short term rentals from here on. The only competition is local governments stopping it. Although it may be way overpriced right now, if you can facture in it’s marginal cost compared to a regular hotel chain, it might be a great long term buy. They proved to be one of the strongest I’m that they made it through this pandemic and now have a pile of cash.

  35. Will Chevalier on December 16, 2020 at 10:13 pm

    Lmao this didnt age well

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  37. Emac on December 16, 2020 at 10:14 pm

    Cramer is a clown

  38. NASSIR K on December 16, 2020 at 10:15 pm

    This guy is adumbass

  39. Jon Jones on December 16, 2020 at 10:15 pm

    buy Airbnb under $100. Really if you can get under $80 it will be a steal. Right now not at $165 or $140 lol wait a couple of weeks.

  40. Lolboii Lol on December 16, 2020 at 10:15 pm

    Under 68 they said 😂

  41. Epicscore Eu on December 16, 2020 at 10:17 pm

    Booking.com is a better value for your money…crazy IPO prices.

  42. garyseeseverything on December 16, 2020 at 10:17 pm

    Free money bailouts forever! IPO junk get bought 10x over no idea how they make money just buy everything forever.

  43. A N on December 16, 2020 at 10:20 pm

    Realize that not only are associations banning airbnb but also Cities. I don’t see a future of growth for AirBnb unless something drastic happens.

  44. koe virel on December 16, 2020 at 10:20 pm

    All this is depending from vaccine 🤣😅
    Putin give vaccine to his daughter few months ago and now he said that he is NOT taking vaccine and nobody seen his daughter for some time now 🤣😅😀
    Good luck counting on that crap

  45. NAVSO FOUR on December 16, 2020 at 10:22 pm

    Pump & Dump schemes made it open at $160 a share, what is this idiot talking about? Why doesn’t he report this to the SEC instead ? What are we talking about here ?

  46. top2pear on December 16, 2020 at 10:23 pm

    LOL at 56-60…..hahahha….try 140 JIm.

  47. Bayanni Rivera on December 16, 2020 at 10:24 pm

    68??? It opened at 145…

  48. Rita Sys on December 16, 2020 at 10:28 pm

    Help, first time investor to be! Where do I buy the IPO stocks?

  49. Frank Soucek on December 16, 2020 at 10:29 pm

    DONT BUY UNTIL ITS UNDER $50

  50. Robert Joseph on December 16, 2020 at 10:30 pm

    Calm down already, you are worse than an excited child on Christmas day, and please stop shouting

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