$ABNB The lockup period for Airbnb ends today. In this thread I explain what a lockup period is and how it could effect the short-term price action of the stock:
A lock-up period is a pre-determined amount of time following an IPO (initial public offering) where large shareholders (executives etc.) are restricted from selling their shares:
Lockups can place enormous selling pressure on a stock. Lets use $UBER as an example, the company IPO'd at $42 per share and fell to the sub-30s upon lockup expiration.
It should be noted that not all lockup expirations will behave the same. Other factors that could impact price-action are valuations, recent earnings reports and macroeconomic conditions. As of right now $ABNB has a NTM EV/S of 14.5 and EV/EBITDA of 114.9x
As of today, $ABNB is down ~5% on average volume. This week should be telling as to the post-lockup period behaviour of the stock.
If you want to learn more about $ABNB @Invesquotes completed an informative deep-dive on his substack. If you would like to see more educational threads like these like and share it helps me out a ton! @mukund how do you think $ABNB reacts this week to this period ending?
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.