greenieS
Verified member
Airbnb's initial public offering (IPO) is a highly anticipated event among investors. It was originally scheduled for early 2020. But after the Covid-19 crisis, which led to a significant drop in its revenues, the US company had to delay the procedure.
The dramatic recovery of financial markets at the end of March 2020 has once again facilitated IPOs. Airbnb took the opportunity to formally submit its IPO application to the SEC (Securities and Exchange Commission) on November 16, 2020.
Moving from a start-up status to a global online tourism company for more than a decade, Airbnb is once again proving that America is the land of success stories.
In response to the interest in participating and investing in the Airbnb IPO, we will try to analyze the company based on its history, business, shareholders, and financial performance.
Based on these elements, you will be able to decide if it is profitable to invest in Airbnb stocks.
Airbnb Shares | Airbnb History
Brian Chesky and Joe Gebbia moved to San Francisco in October 2007 and came up with the idea of unofficially offering an apartment reservation-rental service with breakfast included, realizing that people could not book in last minute a hotel room.
Nathan Blecharzyk, former co-tenant of Brian Chesky, joins them in their entrepreneurial adventure. The three co-founders decided to join forces to found AirBed & Breakfast on August 11, 2008.
Very soon, he will have his first clients after a conference organized by ISDA (Industrial Designers Society of America) in their city, which brought together the best design specialists. Some participants who booked seats for this event had difficulty finding a hotel room.
In search of financing opportunities to grow their business, the three co-founders manage to obtain funds from Y Combinator, an American company specialized in financing start-ups in the pre-advanced phase.
In March 2009, the online apartment booking and rental platform had 10,000 users and 2,500 ads. At the same time, for greater visibility for future investors and users, AirBed & Breakfast is changing its name to Airbnb.com.
The American company diversifies its advertising offer by booking and renting houses, private rooms, villas, and apartments.
In April 2009, Airbnb managed to persuade the American investment fund Sequoia Capital to obtain new financing.
In November 2010, Airbnb raised $ 7.2 million from a group of investors in Sequoia Capital and Greylock Partners.
In May 2011, American actor Ashton Kutcher is investing in Airbnb through his A-Grade investment fund.
As the number of users and ads increases significantly, Airbnb continues to raise funds. In July 2011, it received significant funding of $ 112 million from a group of investors consisting of Russian investor fund DST Global, US venture capital firms General Catalyst and Andreessen Horowitz.
Airbnb is taking advantage of this financial advantage to redesign its website and improve its mobile application. In March 2015, Airbnb is valued at $ 20 billion following a new fundraiser. In March 2017, the US company was valued at $ 31 billion following the latest fundraiser.
Occupying an important place in booking and renting online accommodation for individuals, Airbnb diversifies its activities. First of all, the American company has positioned itself in the luxury sector with Airbnb Luxury for a personalized customer experience.
Airbnb Luxury was founded as a result of the acquisition of Luxury Retreats, a company specializing in premium stays in 2017. Then, in October 2019, Airbnb launched tourist offers in the company of animals.
In April 2020, all Airbnb activities were shut down overnight due to Covid-19. Prohibiting travel from one geographical area to another has led Airbnb to set its draft IPO at a later date.
Declining revenues due to the pandemic have caused the company to reduce its stock market valuation to $ 18 billion. Internally, the US company had to lay off a quarter of its staff to reduce operating costs.
With the partial recovery of tourism and the dramatic rise of Wall Street financial markets to record highs, Airbnb has confirmed its IPO for the end of 2020.
▶ ️ Airbnb shares | Airbnb Business Model
Today, Airbnb is one of the leaders in booking and renting online accommodation for individuals in 220 countries and has 4 million guests. Its business model is based on online interaction between travelers and hosts.
➤ Airbnb acts as an intermediary, managing the booking, payment and settlement of disputes and is remunerated by charging a 3% fee for each booking. Depending on the regulations of each country, it may charge a local fee.
In less than thirteen years, Airbnb has become a global online travel company. Like GAFA, the American company is perpetuating its business model by diversifying into luxury tourism with its Airbnb Luxury subsidiary, restaurant reservations, pet travel deals and even housing construction. It is gradually becoming a C2C and B2C company.
Airbnb has been able to create sustainable competitive advantages, such as competitive pricing and the diversity of its offerings that enhance the customer experience and satisfaction.
This company has revolutionized the tourism industry, accustomed to traditional offers focused on the most visited destinations. The American company mentioned that the tourists staying in the hotels were not satisfied with their stay.
Airbnb wanted to change this approach by offering its customers the opportunity to accommodate local housing.
This allows tourism to be seen in different ways, such as living with a local, living in a house without feeling completely foreign, and spending part of the day with locals from different cities around the world.
▶ ️Airbnb Stocks - Who Are Airbnb's Top Competitors?
Airbnb operates in a highly competitive industry, despite its long-term competitive advantages. Customer acquisition costs remain low. The main competitors are:
➨ Online travel agencies such as Booking, Expedia, MakeMyTrip, Amadeus and Trip.com.
➨ Online booking sites such as TripAdvisor, Trivago and Mafwengo.
➨ Hotel chains such as: Pierre Vacances, Accor, Marriott International, Hilton Worldwide, Intercontinental Hotels Group, Hyatt Hotels and Wyndham;
➨ Independent online platforms focusing on regional markets
▶ ️ Invest in Airbnb Shares | Who are the shareholders of Airbnb?
The list of Airbnb shareholders before the IPO is impressive. Venture capital funds include those that have been involved in financing the group since its inception, such as Sequoia Capital, Greylock Partners, DST Global, Andreessen Horowitz and General Catalyst.
As for asset management companies, there are branches of major US banks (JP Morgan, Citi Group, Morgan Stanley), Fidelity Asset Management, Apollo Global Management, T. Rowe Price, Oaktree Capital, Blackstone and even Blackrock.
Sovereign wealth funds are also present with Temasek in Singapore, China CIC and the future Australian Government Fund.
Airbnb shareholders include major investors such as American actor Ashton Kutcher, Amazon founder Jeff Bezos, German media group Axel Springer, LVMH CEO Bernard Arnault and Yelp CEO Jeremy Stoppelman.
Airbnb IPO Terms and Conditions (IPO)
The Airbnb IPO on the Nasdaq took place on December 10, 2020.
Airbnb shares went public at $ 68 per share under the name ABNB. Immediately afterwards, its share price increased by 113.24%. Its market valuation is close to $ 93 billion, well over an estimated $ 35 billion. Therefore, everyone who has decided to invest in Airbnb will be following this evolution with great enthusiasm.
This good news confirms that Airbnb is optimistic about its future prospects, despite declining revenue due to the Covid-19 crisis.
The arrival of Covid-19 vaccines in 2021 largely explains investors' risk appetite.
▶ ️ Airbnb IPO | Is it risky to invest in Airbnb shares so early?
A company like Airbnb is exciting. This was reflected in the behavior of Airbnb shares on the stock market, after the launch of the IPO in the Nasdaq index.
From now on, it will take over the reality of the company's intrinsic fundamentals, with the risk of encountering unpleasant surprises in the short term.
✍ Investors and traders will need to stay calm and not just focus on strong revenue growth.
➤ First of all, Airbnb should be able to resolve the difficulties of the Covid-19 pandemic quickly.
➤ Second, Airbnb needs to demonstrate that its business model is beginning to become profitable by not constantly resorting to fundraising through indebtedness. In 2018, Airbnb achieved this goal, but the following year its profits went into the red zone due to the increase in operating expenses.
Finally, as with any IPO, there is a lock-in period in which insiders (administrators or large shareholders) cannot sell their shares. At the time of maturity, there may be volatile movements of Airbnb shares on the stock exchange.
The dramatic recovery of financial markets at the end of March 2020 has once again facilitated IPOs. Airbnb took the opportunity to formally submit its IPO application to the SEC (Securities and Exchange Commission) on November 16, 2020.Moving from a start-up status to a global online tourism company for more than a decade, Airbnb is once again proving that America is the land of success stories.
In response to the interest in participating and investing in the Airbnb IPO, we will try to analyze the company based on its history, business, shareholders, and financial performance.
Based on these elements, you will be able to decide if it is profitable to invest in Airbnb stocks.
Airbnb Shares | Airbnb History
Brian Chesky and Joe Gebbia moved to San Francisco in October 2007 and came up with the idea of unofficially offering an apartment reservation-rental service with breakfast included, realizing that people could not book in last minute a hotel room. Nathan Blecharzyk, former co-tenant of Brian Chesky, joins them in their entrepreneurial adventure. The three co-founders decided to join forces to found AirBed & Breakfast on August 11, 2008.Very soon, he will have his first clients after a conference organized by ISDA (Industrial Designers Society of America) in their city, which brought together the best design specialists. Some participants who booked seats for this event had difficulty finding a hotel room.
In search of financing opportunities to grow their business, the three co-founders manage to obtain funds from Y Combinator, an American company specialized in financing start-ups in the pre-advanced phase.
In March 2009, the online apartment booking and rental platform had 10,000 users and 2,500 ads. At the same time, for greater visibility for future investors and users, AirBed & Breakfast is changing its name to Airbnb.com.The American company diversifies its advertising offer by booking and renting houses, private rooms, villas, and apartments.
In April 2009, Airbnb managed to persuade the American investment fund Sequoia Capital to obtain new financing. In November 2010, Airbnb raised $ 7.2 million from a group of investors in Sequoia Capital and Greylock Partners. In May 2011, American actor Ashton Kutcher is investing in Airbnb through his A-Grade investment fund. As the number of users and ads increases significantly, Airbnb continues to raise funds. In July 2011, it received significant funding of $ 112 million from a group of investors consisting of Russian investor fund DST Global, US venture capital firms General Catalyst and Andreessen Horowitz.Airbnb is taking advantage of this financial advantage to redesign its website and improve its mobile application. In March 2015, Airbnb is valued at $ 20 billion following a new fundraiser. In March 2017, the US company was valued at $ 31 billion following the latest fundraiser.
Occupying an important place in booking and renting online accommodation for individuals, Airbnb diversifies its activities. First of all, the American company has positioned itself in the luxury sector with Airbnb Luxury for a personalized customer experience.
Airbnb Luxury was founded as a result of the acquisition of Luxury Retreats, a company specializing in premium stays in 2017. Then, in October 2019, Airbnb launched tourist offers in the company of animals. In April 2020, all Airbnb activities were shut down overnight due to Covid-19. Prohibiting travel from one geographical area to another has led Airbnb to set its draft IPO at a later date.Declining revenues due to the pandemic have caused the company to reduce its stock market valuation to $ 18 billion. Internally, the US company had to lay off a quarter of its staff to reduce operating costs.
With the partial recovery of tourism and the dramatic rise of Wall Street financial markets to record highs, Airbnb has confirmed its IPO for the end of 2020.▶ ️ Airbnb shares | Airbnb Business Model
Today, Airbnb is one of the leaders in booking and renting online accommodation for individuals in 220 countries and has 4 million guests. Its business model is based on online interaction between travelers and hosts.
➤ Airbnb acts as an intermediary, managing the booking, payment and settlement of disputes and is remunerated by charging a 3% fee for each booking. Depending on the regulations of each country, it may charge a local fee.
In less than thirteen years, Airbnb has become a global online travel company. Like GAFA, the American company is perpetuating its business model by diversifying into luxury tourism with its Airbnb Luxury subsidiary, restaurant reservations, pet travel deals and even housing construction. It is gradually becoming a C2C and B2C company.
Airbnb has been able to create sustainable competitive advantages, such as competitive pricing and the diversity of its offerings that enhance the customer experience and satisfaction.
This company has revolutionized the tourism industry, accustomed to traditional offers focused on the most visited destinations. The American company mentioned that the tourists staying in the hotels were not satisfied with their stay.
Airbnb wanted to change this approach by offering its customers the opportunity to accommodate local housing.
This allows tourism to be seen in different ways, such as living with a local, living in a house without feeling completely foreign, and spending part of the day with locals from different cities around the world.▶ ️Airbnb Stocks - Who Are Airbnb's Top Competitors?
Airbnb operates in a highly competitive industry, despite its long-term competitive advantages. Customer acquisition costs remain low. The main competitors are:➨ Online travel agencies such as Booking, Expedia, MakeMyTrip, Amadeus and Trip.com.
➨ Online booking sites such as TripAdvisor, Trivago and Mafwengo.
➨ Hotel chains such as: Pierre Vacances, Accor, Marriott International, Hilton Worldwide, Intercontinental Hotels Group, Hyatt Hotels and Wyndham;
➨ Independent online platforms focusing on regional markets
▶ ️ Invest in Airbnb Shares | Who are the shareholders of Airbnb?
The list of Airbnb shareholders before the IPO is impressive. Venture capital funds include those that have been involved in financing the group since its inception, such as Sequoia Capital, Greylock Partners, DST Global, Andreessen Horowitz and General Catalyst.As for asset management companies, there are branches of major US banks (JP Morgan, Citi Group, Morgan Stanley), Fidelity Asset Management, Apollo Global Management, T. Rowe Price, Oaktree Capital, Blackstone and even Blackrock.
Sovereign wealth funds are also present with Temasek in Singapore, China CIC and the future Australian Government Fund.
Airbnb shareholders include major investors such as American actor Ashton Kutcher, Amazon founder Jeff Bezos, German media group Axel Springer, LVMH CEO Bernard Arnault and Yelp CEO Jeremy Stoppelman.
Airbnb IPO Terms and Conditions (IPO)
The Airbnb IPO on the Nasdaq took place on December 10, 2020.
Airbnb shares went public at $ 68 per share under the name ABNB. Immediately afterwards, its share price increased by 113.24%. Its market valuation is close to $ 93 billion, well over an estimated $ 35 billion. Therefore, everyone who has decided to invest in Airbnb will be following this evolution with great enthusiasm.
This good news confirms that Airbnb is optimistic about its future prospects, despite declining revenue due to the Covid-19 crisis.
The arrival of Covid-19 vaccines in 2021 largely explains investors' risk appetite.▶ ️ Airbnb IPO | Is it risky to invest in Airbnb shares so early?
A company like Airbnb is exciting. This was reflected in the behavior of Airbnb shares on the stock market, after the launch of the IPO in the Nasdaq index.
From now on, it will take over the reality of the company's intrinsic fundamentals, with the risk of encountering unpleasant surprises in the short term.
✍ Investors and traders will need to stay calm and not just focus on strong revenue growth.
➤ First of all, Airbnb should be able to resolve the difficulties of the Covid-19 pandemic quickly.
➤ Second, Airbnb needs to demonstrate that its business model is beginning to become profitable by not constantly resorting to fundraising through indebtedness. In 2018, Airbnb achieved this goal, but the following year its profits went into the red zone due to the increase in operating expenses.
Finally, as with any IPO, there is a lock-in period in which insiders (administrators or large shareholders) cannot sell their shares. At the time of maturity, there may be volatile movements of Airbnb shares on the stock exchange.
