Airbnb Should Have a Spectacular IPO Today.

Justine, Joseph, and Andrew’s Kind of Blue 1959 Airstream in Joshua Tree, CA; Photo Credit: Pixellab.us. Read their story on Airbnb.com (click to access).

​Airbnb Should Have a Spectacular IPO Today.
 
Yesterday, Airbnb priced the IPO at $68/share with a market cap of $47 billion. According to the NY Times, that makes Airbnb’s IPO the largest of the year, with over $3 billion raised.

Warning: Do NOT Place a MARKET ORDER for the Airbnb IPO (symbol: ABNB). The share prices are expected to surge. You want to be sure that you get the price you want. 

 
This could bode well for the first few days of trading, particularly when you consider that DoorDash’s shares soared 86% yesterday on the first day of trading. Airbnb originally hoped to sell shares for $44-$50/share. The increase to $68/share indicates good investor appetite for the home-sharing company. By contrast, when We Work tried to launch its IPO last year, the company’s value imploded, the IPO was scratched and the CEO was canned. Airbnb had to scrap its March 2020 IPO plans this year. However, investor interest has returned (even if revenue is still down 18% year over year). 
 
$47 Billion or $18 Billion
When Airbnb had to raise money in April of this year, the company value sank to just $18 billion. So, is it worth $47 billion or $18 billion? Is the potential marketplace really $1.5 trillion (the serviceable market they anticipated pre-pandemic)? How much longer will Airbnb be cash negative? (The company has never turned a profit in 13 years of business.)

What Could Go Wrong?
There are still the pesky issues of:
 

• A terrible 4Q,
• A pandemic,
• Insiders who need to cash-in to turn paper profits into real cash, and,
• 13 years of cash negative operations,

 
All of which indicate that Airbnb is a risky bet in the mid-term. (Again: today will be explosive for Airbnb.) Futures of DoorDash already forecast an implosion of 50% or more. 
 
Learn more in my Airbnb blog & videoconference (links below).
 
Airbnb Courts Hosts to Invest in the IPO
https://www.nataliepace.com/blog/airbnb-courts-hosts-to-invest-in-the-ipo
 
Airbnb IPO Free Videoconference
https://youtu.be/YlRlVEGfnRY

Would you like to learn how to construct your own Stock Report Card and pick stocks like a No. 1 stock picker? Call 310-430-2397 or email [email protected] to register for our Jan. 16-18, 2021 Online Investor Educational Retreat. 
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Natalie Pace New Year, New You Wealth Empowerment Retreat. Jan. 16-18, 2021. Call 310-430-2397 or email [email protected] to learn more.

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Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations.

ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience.  

Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.

About Natalie Pace
Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 4th edition of The ABCs of Money was released on October 17, 2020. 

Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden. ​

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