...it’s revenues are only ~$4b and its YoY revenue growth is basically 30% (not including 2020, which is worse)?
Is this based purely on comps?
What’s the usual valuation methodology? Is this what they mean by the tech bubble? These valuations make no sense. And what about the operating costs? How is this company still in the red when they barely even have any of the associated assets and operating costs commonly found in the hospitality industry? And the mountain of debt—what’s its origin?
Especially considering the historically low interest rates and the frothy markets. There really is no place for interest rates to go, except for up. Seems reckless to consider this anything but a maximally inflated valuation. Some of the rational I keep reading about—“The CEO is so charismatic! Millennials like him!”—it seems a bit emotional. Not a bad thing when you’re sure of the Fed’s strategy going forward. But in the case, monetary policy might change very soon. I understand why they’d want to rush this IPO, considering the macro trends and associated potential for lower valuations, but this seems way too risky for retail investors to consider as anything but a financial prospect with sketchy fundamentals, especially with the lockdowns basically guaranteed through Q2 of 2021 and possibly even longer. If the real estate bubble pops, people won’t want to travel, and they won’t have homes to use for Airbnb, either.
Submitted December 02, 2020 at 04:19AM by teyyeyhey https://ift.tt/33CPh6p
