AirBnB Files For IPO

[Mike V.]

Breaking news:

Airbnb filed their S-1 today and plan to go public via IPO. Rumor is it’s either IPO or layoffs.

https://www.sec.gov/Archives/edgar/data/1559720/000119312520294801/d81668ds1.htm

Timing couldn’t be worse so it appears they’re desperate for funding.

[Rob Massopust]

All good points. Its going to pop simply because the metrics are in AIRBNB's favor. Look at it from a long term disruptor. Investors want anything that sounds interesting. I cant sell a decent deal to friends of mine but when I mentioned it they are like lets load up. Maybe im in the wrong business. Or they are just greedy and dont really understand or think RE has monster returns. I think the under current is going to be huge.

Would you want to stay in a hotel for more than 3 days if you can stay somewhere nicer, funner and more unique. Air BNB owns no property but takes 21% of all bookings. 18% on the renter side and 3% on host side. 

You have to look past the vacation side, look to corporate and business and insurance and relocation business. They also have the "experience" factor and offers. TAM [total available market] could hit $1.5Trillion. Big stuff to lean into. We do both - Airbnb and Corporate rentals - So the question is do you make money as a host or do you make more money as an investor. [ I had an amazon 3rd party store and dumped [and loss] alot in running an amazon store, but if I dumped just some of that into the amazon stock at $50.00 and now $3200 - would of made all the difference. I think alot of hosts are missing the forest through the trees. only time will tell.

They already raised alot of cash and have $3.5B in Cash.

Timing - you think is suspect and whats the hurry and is covid going to hit hard next spring- who knows.

Hosts - They state hosts minimum buy in is $300 through a special arrangement through brokerage, how much is the max buyin - not sure.

Its Class A shares that is only a 1 to 1 vote vs Class B 20 to 1.

Host price is at IPO open price [no discount- that would of been a big deal for hosts]- the only benefit is you lock in at open and most likely between the time of Pre IPO at IPO price the real IPO open price would be higher and good luck getting your order in before all the autotrades so you are going to be ahead as a host no matter what. 

If ARBN limits hosts buy in to like a $1000 whats the point - but if they offer a discount and you can dump some change in there it would be worth it. If there is no discount and not sure if there is a hold time for hosts before they can sell - not sure yet. 

As a host Im going to load up on a moderate amount and see where that flyer goes. YOu have to look 3 years out to get any kind of future value and a better metric.

Any other thoughts or ideas?