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Airbnb To Go Public

Keep an eye on the most anticipated market debut of the year: Airbnb.

Lucifer Morningstar

Home-rental startup Airbnb Inc. plans to list its shares on the Nasdaq, marking the index's biggest listing since Facebook went public at $16 billion in 2012. I'm stoked, I love Airbnb! My friends love Airbnb! My girlfriend loves it! The point is, even though revenue plunged 67% in the second quarter and this is an obvious way to avoid bankruptcy, I would invest because I believe in this company. People choose Airbnb for the casual atmosphere and cozy feel. Unlike the long hallways with musty carpets that are Hotels.

Me at a Holiday Inn

Earlier this month, Reuters reported the company was aiming to raise $3 billion in its IPO, which could give it a valuation of more than $30 billion. It is targeting a listing before the end of the year. The company reportedly brought in just $335 million in revenue during the period that ended June 30th, down from over $1 billion in the same period last year. Airbnb suffered during the pandemic as users canceled reservations and stopped traveling due to fear of catching the plague. Airbnb was valued at $18 billion in April of this year, which was a huge step down compared to the $31 billion they were valued at beforehand, Bloomberg reported.

The push to go public and the growth in its potential valuation goes to show how dramatically Airbnb was able to recover when it secured emergency funding from investors, even when the outlook for the travel industry was uncertain. They said in July that customers had booked more than 1 million nights in a single day for the first time since March 3rd. People would rather drive to a strangers secluded wooden cabin as opposed to a disgusting, dingy, covid riddled hotel that looks like a Bangkok brothel.

Reuters reported earlier this year that billionaire investor William Ackman had approached Airbnb about going public through a reverse merger with his blank-check company, however Airbnb was prioritizing going public through a traditional IPO. They really need the money. Big losses in quarter four of last year and then the beer flu certainly didn't help. Morgan Stanley and Goldman Sachs Group Inc. are acting as the lead underwriters. Airbnb did not release a timeline for the IPO, so it could be this year or next year. They filed SEC paperwork in August, my guess is very soon.

This is a billion-dollar company that has struggled mightily but is looking for a strong rebound. Like I said, hotels suck unless you are coughing up $600 a night to be treated like a Saudi Prince. Girlfriends everywhere have grown tired of crusty Hiltons next to gas stations. The only way to impress these days is a mansion on a mountain with views Jeff Bezos woud be jealous of.