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Airbnb — 30% Yield Potential for the Most Anticipated IPO 2020Airbnb, the world-famous online platform for finding and renting private housing around the world, is launching its IPO on December 9. Since its inception, the platform has catered to over 825M customers. Airbnb IPO: Key Facts IPO Date: December 9 IPO Cap: USD 28B Number of Post-IPO Shares: 596.39M Shares for IPO: 51.90M IPO Size: USD 2.44B Starting Price: USD 44 to USD 50 per share Target Price: USD 65 per share Underwriters: Morgan Stanley and Goldman Sachs Potential Market The company estimates its potential market at $3.4T, of which $1.80T accounts for short-term stay or rent. The core competition includes Booking Holdings (Booking.com, KAYAK, Priceline.com, and Agoda.com), Expedia Group (Expedia, Vrbo, HomeAway , Hotels.com, Orbitz, and Travelocity), Trip.com Group (Ctrip.com, Trip.com, Qunar, Tongcheng-eLong, and SkyScanner), Meituan Dianping, Fliggy (Alibaba) Despegar, MakeMyTrip, Marriott, Hilton , Accor, Wyndham, and InterContinental, among others. Financial Figures In 2018, Airbnb's earnings increased by 43%, in 2019, 32%, while over the nine months of 2020, the earnings went down by 32% due to the pandemic. The EBIT margin reached -3% in 2017, 1% in 2018, -10% in 2019, and -19% over the nine months of 2020. The main reason for the rising spending and lower margin is the development cost growth: 16% of earnings in 2018 compared to 20% in 2019 and 27% over the nine months of 2020; the G&A reached 13% in 2018, 15% in 2019, and 17% in January to September 2020. Forecast The upside potential may reach 30% of the starting price ($50). The FCFF model projects a net worth estimate of $39.064B, taking into account the conservative values. The target price is at $65 per share, with a 30% yield potential.
NASDAQ:ABNB
by zigangirov
Airbnb — 30% Yield Potential for the Most Anticipated IPO 2020Airbnb, the world-famous online platform for finding and renting private housing around the world, is launching its IPO on December 9. Since its inception, the platform has catered to over 825M customers. Airbnb IPO: Key Facts IPO Date: December 9 IPO Cap: USD 28B Number of Post-IPO Shares: 596.39M Shares for IPO: 51.90M IPO Size: USD 2.44B Starting Price: USD 44 to USD 50 per share Target Price: USD 65 per share Underwriters: Morgan Stanley and Goldman Sachs Potential Market The company estimates its potential market at $3.4T, of which $1.80T accounts for short-term stay or rent. The core competition includes Booking Holdings (Booking.com, KAYAK, Priceline.com, and Agoda.com), Expedia Group (Expedia, Vrbo, HomeAway, Hotels.com, Orbitz, and Travelocity), Trip.com Group (Ctrip.com, Trip.com, Qunar, Tongcheng-eLong, and SkyScanner), Meituan Dianping, Fliggy (Alibaba) Despegar, MakeMyTrip, Marriott, Hilton, Accor, Wyndham, and InterContinental, among others. Financial Figures In 2018, Airbnb's earnings increased by 43%, in 2019, 32%, while over the nine months of 2020, the earnings went down by 32% due to the pandemic. The EBIT margin reached -3% in 2017, 1% in 2018, -10% in 2019, and -19% over the nine months of 2020. The main reason for the rising spending and lower margin is the development cost growth: 16% of earnings in 2018 compared to 20% in 2019 and 27% over the nine months of 2020; the G&A reached 13% in 2018, 15% in 2019, and 17% in January to September 2020. Forecast The upside potential may reach 30% of the starting price ($50). The FCFF model projects a net worth estimate of $39.064B, taking into account the conservative values. The target price is at $65 per share, with a 30% yield potential.
NASDAQ:ABNB
by zigangirov
3
Airbnb (ABNB): Everything You Need to Know for the IPOAirbnb is an online rental marketplace for lodging, home stays, and tourism experiences. The company does not own any real estate listings, but offers a platform through which people can take part in the sharing economy. Airbnb announced its filing for an initial public offering (IPO) in August. In this analysis, we’ll be going over everything investors need to know about the IPO, and my own insight on whether this is a golden opportunity. Most of the information provided below is based on the S1 Airbnb Submitted to the SEC. Disclaimer: This is not financial advice. This is meant for educational and entertainment purposes only. Business Model - Airbnb connects hosts who are willing to provide room, with guests - Airbnb profits from charging a service fee to both the host and the guest - While it initially started off as hosts providing bedrooms, the company has managed to find and expand on different types of lodges. - Airbnb is well known for its systematic operations; they have a unique guest/host review system, rules regarding cancellations and deposits, and is oriented and focused on building a community. Counterparts Cases - Airbnb’s counterparts include companies like Expedia group (EXPE) and Booking Holdings (BKNG) - It’s important to take into consideration the growing competitiveness within the booking market. - Unlike Airbnb, both Expedia group and Booking Holdings are reporting solid earnings as their operating profits increase yoy. - TripAdvisor (TRIP), which reported $156m in revenue for 2019 and an operating profit of $18.7m, while small, is another example of companies competing against Airbnb - However, to be fair, these companies also all fell victim to the Covid-19 pandemic. IPO Information - The company will be listed on the NASDAQ exchange under the ticker ABNB - The specific date of the IPO and price per share is yet to be officially announced. Financials - Due to Covid-19, the company’s revenue and profitability plummeted in 2020. - Q2 2020 revenue was $350m, which is a 67% compared to Q2 2019, which recorded a quarterly revenue of over a billion. - These numbers are less than half of the reported revenue for Q1 2020, of $842m - As a result, the company’s valuation dropped from $31b to $18b. - The fact that the company is not profitable yet is also quite fatal. - In 2017 and 2018, there was a lot of hype around the company as they showed positive numbers for their EBITDA (earnings before interests, taxes, depreciation, and amortization) - But, the company has been reporting inconsistent revenue ever since, and their sales and marketing - As of September 30 2020, the company has $2.6b in cash, which is more than numbers reported for cash and cash equivalents in 2019 and 2018. - Nonetheless, this is way below their short term net liabilities of $4.38b, which is considered a warning sign in terms of financial stability. - Additionally, they have $1.8b in long term debt as well. - Taking all of this into consideration, we could make an educated guess that Airbnb is trying to seek for funds through this IPO. - It has already undergone its Series F investments, and is a unicorn company (a private company with a valuation over $1b), which makes it difficult to receive any further meaningful investments. Covid-19 Impact - Airbnb is part of the industry that was arguably most heavily affected by the Covid-19 pandemic - They had a net 4.1m cancellations in March, when fear regarding Covid-19 peaked. - I’ve mentioned this in a previous analysis, but Covid-19 has fundamentally changed the way we live forever - As a result, Airbnb’s goal of creating a community of hosts and guests has faced a huge obstacle, as people prefer to stay at hotels, which involve lower risk of Covid-19 infections. - Thus, whether people would want to travel via Airbnb after the pandemic is solved still remains extremely murky, as clear solutions to the current situation are yet to be proposed. - Unlike other large tech companies, Airbnb lacks the cash to endure a long phase of hardship. - Due to the impact of Covid-19, the company has laid off over 1,900 employees to cut costs. Historical Cases - We have seen other companies within the sphere of the sharing economy take part in IPOs that have failed miserably - Companies such as Uber Technologies (UBER) and Lyft (LYFT) are prime examples. (Refer to the charts on the right) - They were provided multiples way above their actual value, and their stock prices eventually fell way below the IPO price. - WeWork, once valued at $47b, failed its IPO due to massive debt and shaky corporate structures, and is now valued at $2.9b - Given past cases of other tech companies within the realm of the sharing economy having undergone failed IPOs due to overvalued multiples, it’s important to consider why Airbnb might be exempt from this case. Mike’s Insight In summary, while Airbnb’s listing is arguably the most important IPO of 2020, investors need to consider all possible factors before participating in the IPO. Its growing number of users suggest that the business is on the right track over the long run, but is faced with a serious external risk that the company has no control over. As this risk extends throughout time, the more damaging it is to the fundamentals of the business, thus providing room for investors to reconsider the proper valuation of the company. In my humble opinion, given that the company goes public at a $30b valuation, I think we’d see prices drop sharply after the IPO. Nonetheless, I could consider adding it to my portfolio as we see clearer signs of the world recovering from the coronavirus. If you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight :)
NASDAQ:ABNB
by Michael_Wang_Official
52
World First: Amun and Binance Launch first BNB ETP on Swiss Stocbuy on rumors sell on facts you decide based on this news: Leading global cryptocurrency exchange, Binance, and the world’s leader in the issuance of cryptocurrency Exchange-Traded Products (ETP) Swiss firm, Amun AG, are excited to announce a unique partnership between the two companies to launch a BNB ETP on the regulated segment of the SIX Swiss Exchange. Trading of the Amun BNB (ABNB) ETP begins today. The launch of the ETP is a first step for the partnership, paving the way for more innovative products contributing to the global transition to crypto assets. BNB, initially created to pay for fees on the Binance exchange which is the largest cryptocurrency exchange in the world by trading volume and users, has since evolved into a wildly-used utility token with more than 120 use cases across the global blockchain ecosystem. Additionally, BNB is also used as the native token for the Binance Chain, which is a new blockchain platform launched by the Binance community for creating and transferring tokens in a fast and efficient manner. In just two years since Binance’s initial USD$15 million token raise, BNB is now one of the most widely-used utility tokens in the blockchain space and has a total market capitalization of greater than USD$2.5 billion, making it the world’s eighth-largest crypto asset by market capitalization to date. The ABNB wraps the BNB utility token into a traditional financial structure, making it more accessible not only to tech-savvy crypto enthusiasts but also to the wider institutional and retail market as a whole. By listing the BNB ETP on the SIX Swiss Exchange, the world’s tenth-largest exchange, clients can add BNB exposure to their stock portfolios as easily as buying a share in any company, in a traditional manner using a brokerage firm or bank. The ABNB ETP is issued by Amun and administered via the Amun Onyx Platform, the premier issuance and administration platform for crypto exchange-traded products. To date, Amun has issued eight ETPs with crypto-currencies as the underlying asset with the ambitious goal to bridge the gap between the traditional financial world and the blockchain-based infrastructure. “Our partnership with Amun in launching the BNB ETP will provide investors with a new and regulated asset class with a unique dimension to utility tokens, making them more accessible and reliable through a traditional financial infrastructure,” said CZ (Changpeng Zhao), Binance CEO. “This will provide traditional investors access with diversified exposure and segue into the global cryptocurrency market and its innovative products.” “It’s been tremendous to watch the fast ascent of Binance from its humble launch in 2017 to the leading position it commands today,” said Hany Rashwan, Amun CEO. “We are so excited to partner up with the world’s largest crypto exchange and make their native token accessible to institutional and retail investors in the most secure, cost-effective and regulated Swiss exchange-traded product.” About Amun AG Amun makes investing in crypto assets as easy as buying a stock. Investors can invest in crypto easily, safely, and in a regulated way on the SIX Swiss Exchange. Founded in 2018, Amun is led by a team of talented serial entrepreneurs and experienced professionals from the technology and financial world. Headquartered in Zurich, the company has launched several world firsts, including the first listed crypto index (HODL) in November of 2018. Amun has eight crypto ETPs listed today and has over $75 million in AUM in total listed and planned ETPs. Previously, Amun has partnered up with leading crypto companies including Bitwise, Bitcoin Cash Foundation, and Bitcoin Suisse to list new innovative crypto products. For more information, please visit www.amun.com.
Short
by IgorPorokh