StockOpine's avatar
$40.8m follower assets
$ABNB - Goldman conference
  • “So what we see is that when demand goes up, host tend to tell their friends, hey, I am making a lot of money”… “In other words, supply attracts demand, demand attract supply and that’s the first thing they are seeing with the network.” Brian Chesky, CEO

➡ Word of mouth ‘replacing’ marketing, Airbnb’s brand is strong and network is growing organically.

  • “in this November, we are going to have a pretty big update for hosts. You will see some upgrades to protections and making it even easier to list on Airbnb” Brian Chesky, CEO

➡ Airbnb demonstrating commitment to enhance its offering to both hosts and guests.

  • “now I think it’s ready to invest like significantly in this business again.”… “So I think that next year is going to be a big year for Airbnb experiences. We have some really exciting things in the roadmap.” Brian Chesky, CEO

➡ Experiences are back-> more optionality
Christian's avatar
Seems to be very excited for the future!
StockOpine's avatar
@christian7621 indeed. Everything seems perfect 👌🏼
Christian's avatar
@stockopine dare I say to perfect….kidding lol. Great run company with great management and a great future
StockOpine's avatar
@christian7621 hehe. Agree with you.
Christian's avatar
@stockopine is Airbnb a top holding for you or you just have it in portfolio. I know you talk a lot about them
StockOpine's avatar
@christian7621 it is not one of our largest holdings but neither an insignificant one. We added when it was trading around $94 and we could potentially add more.
Christian's avatar
@stockopine good to hear! Middle of the pack winner let’s hope lol. Of course hopefully there’s a chance to add more
StockOpine's avatar
@christian7621 it is likely that such opportunity will arise under this volatile environment. Let’s see :)
Christian's avatar
@stockopine definitely agree with you there. Benefits of having a small portfolio when there’s volatile like this and you really have done research on these names you can add happily
Joshua Simka's avatar
Not sure if Chesky is trying to draw investors to the stock with these comments or hosts to the platform? (Maybe both?) I remain skeptical on $ABNB. Mainly based on my experiences as a user and anecdotes from hosts I've read online. And something about the investment community's thrill for this stock lately is reminding me of $FSLY and $PTON and $UPST. Hey, it's just a feeling I have. So today this company is worth $66B with a PE of 56. I always want to know: what's the return profile on this investment? Over or under 5x (so, $330B market cap, or about 17.5% annualized) in 10 years?
StockOpine's avatar
@tomato it could be a combination of both, though, Airbnb managed to increase the number of hosts significantly over the last years due to the investments to attract/support hosts.
As for the return profile, that is an interesting question. For us a 2x over 5 years is sufficient.

Management through Chesky's compensation structure "expects" somewhere around 4x (performance RSU have progressively higher stock price hurdles, ranging from $125 in 2021 to $485 in 2030).

Author

Related