Airtasker (ASX:ART) share price surges a further 86% higher

The Airtasker Limited (ASX:ART) share price has continued its incredible form and jumped a further 86% a day after its IPO…

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The Airtasker Limited (ASX: ART) share price is on fire again on Wednesday following its incredibly successful IPO on Tuesday.

Australia's leading marketplace for local services saw its shares rocket a massive 86% earlier today to reach a new high of $1.95.

When the Airtasker share price hit that level, it meant it was up a whopping 200% from its IPO listing price of 65 cents.

At the time of writing, the company's shares have eased back a touch but remain up 59% to $1.67.

What is Airtasker?

Airtasker operates Australia's leading marketplace for local services. It also has operations in Ireland, New Zealand, Singapore, the United Kingdom, and the United States. As of its listing, there were more than 4.3 million registered users on Airtasker's marketplace.

From its platform, consumers are able to search for relevant independent workers to handle everyday tasks. These include handyman jobs, domestic cleaning, removals, gardening, and furniture assembly.

The company estimates that the total addressable market for local services in Australia is currently $52 billion and growing. Whereas including all its international operations, its aggregated total addressable market is worth $591 billion in 2019.

As a comparison, the company is currently on course to meet or exceed its prospectus forecasts. This will mean gross marketplace volume (GMV) of $143.7 and revenue of $24.5 million in FY 2021.

Clearly, it has a long runway for growth ahead of it.

Valuation

While Airtasker looks to have a very bright future, it is worth noting that a significant amount of growth is already being built into its shares.

Based on the current Airtasker share price and its 420.6 million shares outstanding, the company has a market capitalisation of just over $700 million.

That means its shares are currently changing hands for approximately 28.5x estimated FY 2021 sales.

Given this lofty valuation, Airtasker shares are certainly a high risk commodity right now.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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