airbnb has opened at about 145
dollars a share up 78 remember the
offering price was
68 a share it was quickly ratcheted up
there
demand in the very beginning was said to
up based on whatever supply and shares
they would have
uh but with this offering now with
airbnb we're going to continue to show
that
um it is uh having the same torrid
response on the part of investors
that we saw doordash have a little more
than 24 hours ago jacket deangelis
following all this it is going to script
right now
what what can we make of its opening
minutes here
well i was a little disappointed to see
it open at 146 because we were talking
about numbers like 156 but when you
think about the price that
it priced at 68 i mean if you're
invested in this company you're still
doing really well 118 percent
up on the day so far an 81 buck gain
it's pretty impressive but you know neil
i stand back from my my point of view
and you too as we watch these unicorns
go public you see what happened with
doordash yesterday
and you look at a company like airbnb or
some of the other unicorns that we've
seen this year
and you wonder you know if charlie
gasparino wasn't right a little bit
earlier that perhaps
we might be in a little bit of a bubble
here in the sense of the kinds of gains
that we're seeing and you also noted the
fact that we've seen these ipos
then sell off um after it may not happen
with this one i think
they're not all created equal but it's
certainly something to think about
especially when dow is at thirty
thousand
i hate to be has glass and uh glass half
empty as you said before
um i'm not as old as you are but i tend
to kind of look at it that way sometimes
with some caution
you know also what's been made a big
hullabaloo about is
is whether it is a category leader you
could make the argument a doordash that
has
you know more than half the food
delivery market right now that you could
leverage off that
still get more food deliveries um you
could start delivering other
stuff um and and investors build that
into evaluation airbnb's case
it is a crowded field of those who you
know are in the vacation
rental arena that's just leaving aside
the hospitality industry itself hotels
and what have you
but other uh high-end services uh
exclusive resorts and sparado
and a host of other marquee players so
there's more competition there but i
know the ceo
has said he expects to be that category
leader that's going to be important to
keeping these rich evaluations going
right
well here's what i would say i look at
it this way as a result of the pandemic
right we've all changed how we're doing
things how we are working
people are working remotely it sort of
accelerated so many things but i was
even saying to my uber driver this
morning when there was
no traffic at all i wonder when the
light switch is flicked and everything
goes back to normal and everybody's
gotten a vaccine we know it's going to
take some time
but how many people actually come back
to work and how many people are going to
stay home because they figured out a way
to do it the same principle i think
applies to airbnb here
this may be the hot thing to do for a
while it may make people feel
comfortable but ultimately
especially on the high end for example
in maybe not next year but the year
after if i want to go to
tahiti or bora bora maybe i don't want
an airbnb and i really want to stay at
that luxury resort at the four seasons
and feel like i'm being pampered and
feel like it's a real vacation when it's
safe again so
it'll be interesting to see how this
plays out over time and also you have
different markets right you've got some
people
charlie mentioned he got an airbnb in
italy and it was really cheap and really
efficient
and some people are just going to always
want that and and other people are going
to say no i i want to be pampered i want
that luxury when i travel
so it's a matter of consumer preference
yeah i think charlie was lying i think
he was looking for an airbnb in the
poconos but if he says
italy i'll i'll say italy um you know
what's interesting is you've been
speaking here too jack i mean you
mentioned that there was a little bit of
surprise not surprised you don't want to
get greedy here
um you know coming in at 146 dollars a
share at the big price of 68
but it had gotten as high 150 556 now
it's at almost 160. we don't want to
over analyze these things with a better
than uh
you know 133 run-up on its offering here
but it gets back to this notion is this
a post-pandemic play
because you know during the pandemic was
very hard for people to go anywhere
um you could build up expectations now
and maybe that's what has it at session
highs here close to 165 bucks a share
that with vaccines on you know coming
out and people
really sort of inclined to travel again
that that airbnb could be an immediate
beneficiary
yeah absolutely and if you take the
longer term approach as i talked about
before that this company is really a
disrupter in the industry
the way uber was for taxis for example
and that
model maintains and it was the leader um
you know you had guests on today saying
that they were they had the stock and
they're going to hold on to it they're
not going to sell a share because they
really think
that airbnb is the future um and that
could be what you're seeing here when we
opened um
you know the people that were in the
stock of the open and then you have
other people who want to buy and get
into it as well and they're not
there won't be as much selling you'll
see some selling tomorrow 96
here in profit today some people will
take some profits but i don't think
they're going to sell this one down
too far if they really believe in that
disruptor model
yeah and on to that point i mean we're
looking at now uh
the the the the price run of this was
prices 68 dollars a share
i hasten to add when they were first
kicking around going public
they were talking a number that was in
the the 40-something dollar
share range so when you think of where
they were
and to think about when they were you
know laying off people because the
business model wasn't working out or
they
had you know a run-up and all of that
here of the the
the valuation of the company at 68
dollars a share
uh was for close to 50 billion 47
billion dollars
now we're more than two and a half times
over that level
now which would give it a market a cap
in the vicinity of a
110 to 120 billion dollars