This may be off topic, but is there a place I can go to see when IPOs are scheduled?
Bloomberg terminal ECDR keyword.... or https://www.marketwatch.com/tools/ipo-calendar
Ahead of IPO, Airbnb achieves profitability for second year in a row
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Re: Ahead of IPO, Airbnb achieves profitability for second year in a row
#42Earlier quoted context omitted.
What's wrong with a $1 profit? Sounds like sustainable tax planning to me..
> What's wrong with a $1 profit? It's hard to react to unforeseen conditions in the market and/or grow the company when you have no war chest. You could borrow more money, then you'd no longer be 'profitable' for at least some amount of time.
So i've heard this refrain for years to come but then there are so many counter examples. Amazon for one. They've never posted a profit yet they've managed to react and out maneuver most companies with sizable war chests.
Re: Ahead of IPO, Airbnb achieves profitability for second year in a row
#43They're often considered similar businesses, but intuitively it seems to me that, long-term, Airbnb will be valued higher than Uber and other ridesharing companies.
Home rentals seem to be simpler market to operate in than coordinating real-time supply and demand between drivers & riders. Additionally, Uber seems to be facing issues on the driver side of the business - they have a $650 driver acquisition cost & a 12% monthly churn rate [1].
It seems to me like this is the economics problem of a return on capital (Airbnb) vs. return on labor (Uber, etc.) playing out in the on-demand space.
[1] https://seekingalpha.com/article/4231786-will-wall-street-sh...
Re: Ahead of IPO, Airbnb achieves profitability for second year in a row
#44It's going to be interesting to watch Airbnb IPO at just below the valuation of Priceline.com / Booking Holdings, while Priceline has 3x the revenue and 50-100x the profit. That's a helluva bet on Airbnb still having immense growth left in the tank, as the IPO valuation is already pulling at least five or six years of growth forward.
I also have a sneaking suspicion that whilst AirBnB have undeniably executed well, Booking.com is at least as well placed to go after AirBnB's market as the reverse (AirBnB-type rooms, apartments and villas at competitive prices do exist on Booking.com albeit in much smaller numbers, they also have a strong brand and hosts aren't tied to a single platform). The other interesting comparison point is Sabre: completely…
To me it feels like Priceline have already started moving in that direction.
There's a Booking.com ad in Australia that is very AirBnB-esque (to the point that my partner thought it was an AirBnB ad until the Booking.com tagline came up); so my feeling is that they're ready and keen to compete in that space.
Re: Ahead of IPO, Airbnb achieves profitability for second year in a row
#45Earlier quoted context omitted.
you can buy puts and easily limit your down side. edit: whoever downvoted this, do you not understand how buying puts works? your risk is capped at the money you spent on the contracts. you can only lose that amount.
That sounds like hedging a bad idea with another bad idea. Options expire, so not only do you have to be right that the stock will go down, but you also have to be right that it will go down before your options expire. The further away the expiration, the higher you'll be paying for implied volatility. This sounds like a terrible strategy for a hunch that regulations are going to eventually impact Airbnb at some fuzz…
I am pretty sure what the parent is saying is to buy puts in lieu of shorting. There is no hedging here, just limiting downside.
Re: Ahead of IPO, Airbnb achieves profitability for second year in a row
#46Profitable by EBITDA could be profit of $1. Current valuation? Who knows, but I see ~$30B being mentioned in a few media reports. Assuming that AirBnB eventually becomes an enormous, stable, established company with a P/E ratio of ~15, that would mean ~$2B in profit per year. Will be interesting to see if they achieve that!
What's wrong with a $1 profit? Sounds like sustainable tax planning to me..
You are at the mercy of you investors. Any unexpected cost would "wipe out" your profits and you would generate net loss.
Re: Ahead of IPO, Airbnb achieves profitability for second year in a row
#47Valued at $31 billion in 2017, raised $4.4 billions.
Probably at least worth between 50 and 100 billions now, I would say $80-$120 billions.
YC will be funded for a couple centuries with that IPO.
Re: Ahead of IPO, Airbnb achieves profitability for second year in a row
#48Earlier quoted context omitted.
> What's wrong with a $1 profit? It's hard to react to unforeseen conditions in the market and/or grow the company when you have no war chest. You could borrow more money, then you'd no longer be 'profitable' for at least some amount of time.
So i've heard this refrain for years to come but then there are so many counter examples. Amazon for one. They've never posted a profit yet they've managed to react and out maneuver most companies with sizable war chests.
Amazon has definitely posted profits.
https://qz.com/1341589/amazon-can-make-loads-of-money-when-i...
Re: Ahead of IPO, Airbnb achieves profitability for second year in a row
#49Earlier quoted context omitted.
That sounds like hedging a bad idea with another bad idea. Options expire, so not only do you have to be right that the stock will go down, but you also have to be right that it will go down before your options expire. The further away the expiration, the higher you'll be paying for implied volatility. This sounds like a terrible strategy for a hunch that regulations are going to eventually impact Airbnb at some fuzz…
I am pretty sure what the parent is saying is to buy puts in lieu of shorting. There is no hedging here, just limiting downside.
exactly this.
Re: Ahead of IPO, Airbnb achieves profitability for second year in a row
#50It's going to be interesting to watch Airbnb IPO at just below the valuation of Priceline.com / Booking Holdings, while Priceline has 3x the revenue and 50-100x the profit. That's a helluva bet on Airbnb still having immense growth left in the tank, as the IPO valuation is already pulling at least five or six years of growth forward.
Booking is at 78.68B. From first hand experience I think Airbnb's technology is at least 10x better than Booking's (I visited and talked to both Airbnb and Booking.com employees in their respective offices).