How to buy Airbnb (ABNB) shares from Singapore

By   |   Verified by David Boyd   |   Updated 4 Oct 2023

Airbnb Inc (NASDAQ: ABNB) is a US company that created an online marketplace for mainly holiday rentals and homestays. The company was founded in 2008 and is based in San Francisco, California.

Airbnb went public in December 2020 at US$68 per share. This is a Singaporean's guide to investing in this company.

About the company

Airbnb overview

Airbnb operates as a P2P (person to person) rental site that acts as a broker, earning a commission, by advertising and executing transactions. This has enabled private and commercial property owners around the globe, to rent out their properties, and even spare rooms.

Airbnb has 2.9 million hosts worldwide, in over 100,000 cities in 220 countries. Worldwide, there are over 7 million Airbnb listings and around 14,000 new hosts are joining the platform monthly in 2021. The company reported a revenue of US$ 3.378 billion in 2020.

The curtailments on travel and tourism across the globe during the pandemic devastated the travel and tourism industries and Airbnb's business operations. The company is now recovering, with the lifting of travel restrictions across the globe.

Airbnb subsidiaries include HotelTonight and Luxury Retreats International Inc.

Unsure about what trading platform to use?

Where to buy Airbnb shares

Moomoo

On website

Highlights

  • Trade blue-chip stocks in the US, HK, and SG markets.
  • Moomoo is the first global digital brokerage to offer a $0 platform fee, $0 data fee, and lifetime $0 commission for US stocks, trade with no fees in Singapore
  • Earn up to 5.8% interest rate through Moomoo Cash Plus account.
IG

On website

IG

Highlights

  • IG allows you to invest in 17,000+ markets worldwide.
  • Commission at just 0.1% (min S$10) on Singapore share CFDs.
  • No deposit fee when you fund your account using bank transfers, FAST and PayNow.
  • Get access to advanced trading tools and educational resources.
Tiger Brokers

On website

Highlights

  • Supports U.S. equities, H.K. equities, ETFs, options, and futures as well as margin trading for investors.
  • Enjoy some of the most competitive commission fees in the market here at Tiger Brokers to add value to your investing journey.
  • Holds a Capital Markets Services Licence under the Securities and Futures Act issued by the Monetary Authority of Singapore (MAS).
Webull

On website

Webull

Highlights

  • Get a USD 150 cash voucher when you signup, fund your account and trade with Webull. Terms and Conditions apply.
  • Trade US stocks, ETF, and Options with $0 commission, $0 platform fee, and $0 membership fee.
  • Trade HK stocks with $0 commission, $0 platform fee, and $0 membership fee.
  • Provides intuitive and powerful advanced charts, multiple technical indicators, and premier Level 2 Advance (Nasdaq TotalView).

Pros

  • Easy to use mobile app.
  • Get started with just $1.
  • Allows you to trade fractional shares.
  • Access to advanced trading tools.

Cons

  • Scarcity of instructional resources for investors.
  • Supports HK and US markets only.
Pepperstone CFD

On website

80.9% of retail investor accounts lose money when trading CFDs

Pepperstone CFD

Highlights

  • Razor sharp pricing from multiple Tier 1 banks with consistently competitive spreads.
  • Low forex, no deposit & withdrawal fee, and no inactivity fee.
  • Regulated by ASIC, BaFin, CMA, CySEC, DFSA, FCA, and SCB.

First time buying?

How to buy Airbnb shares

Step 1: Select a broker

There are many online brokers that offer different options. When choosing a broker, there are several key points to consider. These are some of the key features to look for when choosing a broker.

Commission-free trading

Many US share trading platforms offer this option. It is possible to save money on share trading by not paying commissions.

Fractional share investment

Fractional share investment means that you can only buy a portion of a share, rather than the entire thing. This may be worth considering as Airbnb shares can be quite expensive.

A user-friendly trading platform

It doesn't have to be difficult to trade shares. Keep an eye out for a platform that is simple to use.

Research, analysis, and reporting

You should look for platforms that have a strong research and reporting section. This section can provide you with important information about Airbnb such as company overview, price history and recommendations, and even price forecasts.

Educational resources

Many platforms offer an educational section that teaches you all about share trading.

Step 2: Fund your trading accounts

Next, deposit funds into your account. If you just opened a trading account, it might take some time before the funds clear so you can trade.

Step 3: Decide how much to invest

Fractional share investing is a great option, as Airbnb shares can be expensive. Fractional investing allows you to start small and take on less risk. This also means you can make more money by buying in at low prices so your total cost is lower.

Step 4: Invest in an ETF or buy shares

You can either purchase shares and then own them directly or invest in exchange-traded funds (ETFs). This is similar to a mutual fund and can be great in certain circumstances. These funds are less appealing to active traders because they have less control over the money's destination.

Many ETFs have exposure to Airbnb including SoFi Gig Economy ETF (GIGE), Vanguard Total Stock Market ETF (VTI), and Vanguard Growth ETF (VUG).

Step 5: Set up your order

You can customize what you buy and for how much. There are many order types. These are the main ones in common use.

Market order

Order to purchase/sell shares instantly. This ensures that the order is executed immediately, but does not guarantee the price.

Let's suppose Airbnb shares trade at US$170. The price of Airbnb shares drops to US$166 after you place a purchase order. The price of your purchase will be lower. The same applies to price increases.

Limit order

Execution-only orders for buy limit orders are executed at the price quoted or less. You may wish to buy Airbnb stock at a price of US$165. You can submit a limit order for this amount. It will only be executed if Airbnb shares fall to US$165 or less.

Stop limit

This type of order allows you to sell your shares at a certain price if the share price starts dropping. Let's suppose you want to sell your Airbnb shares if the price falls to US$160 per share. Your stop limit order executes automatically if the shares drop to this price.

Step 6: Place your order

After you've chosen a broker funded your account according to the amount you want to invest, and determined how you will invest your Airbnb shares based on the order type, you can place your order. This is usually done with a click of a button.

After you buy

What moves Airbnb's share price

Once you buy shares, it is necessary to keep an eye on your investment and watch how the share as well as the company performs.

Monitor Airbnb’s performance and share price

Whether you are buying shares with a speculative motive or as long-term investments, you must watch company performance and industry trends.

Airbnb is popular among institutional investors (funds).

Airbnb's closest competitor with a similar platform is Vrbo. Other competitors include Booking.com, Tripadvisor, Agoda, Expedia Group subsidiaries including Stayz, TravelMob and Bookabach, TUI Villas, FlipKey, TravelStaytion, Tripping.com (HomeToGo), and Plum Guide. Not all of these, however, are holiday rental marketplaces. HotelsCombined and other hotel and travel sites also compete with Airbnb.

Airbnb is encroaching into the market typically associated with hotel brands like Hyatt Hotels (NYSE: H), Marriott International (NASDAQ: MAR), Hilton (NYSE: HLT), and other hotel chains who are investing in their offering to head off Airbnb’s threat.

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