Thesis
Airbnb will be largest end-to-end online travel platform connecting guests with hosts providing accommodation and experiential services.
Bull Case
- Airbnb has shown resilience through the pandemic, pivoting to domestic travel and remote work stays
- Asset light model (Airbnb doesn’t own hotels or rooms) allows for adaptability and flexibility
- Guests get to experience unique and affordable stays where traditional hotels are absent, hosts can monetise their spare bedrooms or even run their own business, win-win
- Anticipate operating metrics to improve as vaccine rollout continues and travel resumes even with minimal cross-border travel
Bear Case
- Airbnb doesn’t operate its own rooms, highly dependent on hosts signing up on the platform
- Widening losses (PE -17x) and high valuation (PS 27x)
- Substantial one-off costs and stock-based compensation incurred, but expected to reduce in future
Trading Plan
- Long-term: long entered at $145, no TP, SL $120 (-17%), accumulate below $145
- Short-term: long entered at $144, TP $210 (+46%), SL $120 (-17%)
Disclosure: I’m long ABNB
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Airbnb $ABNB: Why I Bought The Dip
Airbnb debuted strongly, closing considerably higher on its first trading day. Since IPO, Airbnb continued to rise and hit an all-time high close to $220 in mid-Feb 2021. Subsequently, Airbnb
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Airbnb IPO: Will This Travel and Leisure Play Soar Post-Pandemic?
Airbnb will IPO this Thursday 10th December 2020 on the Nasdaq under ticker symbol ABNB. Details of the IPO Price: $68 (up from previous target range $44-$50 per share) Number