What happened
Shares of Airbnb (ABNB 2.60%) are up almost 20% just this week, including a 9% bump today, as of 2:20 p.m. EST. The move has the stock at a record level since its initial public offering (IPO) a little over a month ago.
So what
The only news out today is an announcement that Airbnb has decided to cancel reservations made for Washington D.C. during the inauguration period, and will prevent any new such reservations from being made.
Image source: Getty Images.
The announcement cites requests from local, state, and federal officials asking people to stay away from Washington D.C. during inauguration week. Airbnb will be refunding guests whose reservations have been canceled, and investors may be supporting the company for another aspect of the announcement.
At its own expense, the home rental platform will also be reimbursing hosts for the money they would have earned from the canceled reservations.
Now what
Airbnb also said it has been actively working to prevent hate group members from being part of its community, and has, in fact, identified and banned "numerous individuals" from its platform.
Regardless of whether today's move in the stock is sentiment supporting the company's position, this week's gains have vaulted Airbnb's market capitalization to over $100 billion for the first time.
Airbnb investors may also be bolstered by an SEC filing from Monday showing that respected investment management firm T. Rowe Price Associates (TROW 0.95%) owns more than 10% of Airbnb common shares. Where there are buyers, there are also sellers, but seeing professional financial firm ownership alongside an investment sometimes gives investors more confidence.
