re: ABNB (Airbnb) raises IPO to $56-$60 per share

202 is a big number assuming it opens at 150-ish. That's a 35% increase immediately. Not impossible - Snowflake spiked 40% after opening before it started coming back down.

I didnt follow the Dash opening, but I dont think it was near that big of an initial rush. Maybe 10% increase after opening before dropping? Correct me if I am wrong on that.

Point is: Based off of previously hyped openings, I have no clue .

So is there any way for any of us to buy stocks at IPOs or do you have to basically be an institution to have any chance?

You can also have a lot of money.

But you wouldn't be able to sell for a while. Which typically, you wouldn't want to anyway.

So is ABNB overvalued currently or are y’all still buying?

IPO through Fidelity requires a 100k entry I think...not sure how others do it..

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I bought at 148 and sold at 162 fifteen minutes later.

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I bought it near its high oh well that is what you get for chasing a stock on the way up. Lets just hope its got more climbing to do in the next few days.

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Don't feel too bad...I've missed more than a few opportunities by NOT chasing a stock on it's way up.

Airbnb reported just $1.34 billion in revenue in the third quarter and generated $4.81 billion in revenue in 2019 prior to the pandemic.

In other words, the stock opened at a valuation of around 20.8 times normalized sales. Airbnb also reported a normalized net loss of $674 million in 2019.

Airbnb's Competition: For comparison, legacy hotel stock Marriott International Inc (NASDAQ: MAR) reported $5.37 billion in revenue and net income of $1.27 billion in 2019 prior to the pandemic.

The stock currently trades at a price-to-sales ratio of just 3 and has a market cap of only $41.2 billion.

Hilton Hotels Corporation (NYSE: HLT) reported $3.77 billion in revenue and $881 million in net income in 2019. The stock trades at 5 times sales and has a market cap of $29.1 billion.

Hyatt Hotels Corporation (NYSE: H) had $2.56 billion in revenue and $766 million in net profit in 2019. The stock trades at just 2.5 times sales with a $7.3-billion market cap.

Wyndham Hotels & Resorts Inc (NYSE: WH) generated $1.43 billion in revenue and $157 in net income in 2019. The stock trades at 3.5 times sales and has a $5.3-billion market cap.

In other words, Airbnb generates $4.81 billion in normalized annual revenue at a net loss of $674 million and has a market cap of around $100 billion.

Marriott, Hilton, Hyatt and Wyndham generate $13.13 billion in normalized annual revenue at a net profit of $3.07 billion.

Those four hotel companies have a combined market cap of just $82.9 billion, far lower than Airbnb’s.

I know it's just anecdotal but man I hate airbnb. Have tried it three times and have had three awful experiences.

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With the company or with the hosts?

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I would say once with the company and the other two times with the hosts.

Yeah the company customer service is basically non existent. I think at one point AirBNB was a good value compared to a hotel. Now whenever I have checked, it seems like they are pretty comparable and even if it's a little more, I would rather just go with the hotel as I know what I am getting.

These experiences are only based on AirBNB's in the US in a major city.