AirBnb Is Going Public
AirBnB is coming. It submitted a confidential draft registration last night to list on a stock exchange. It’s the vacation rental’s financials that are being kept under locks, and while that’s not a good omen, it might just allow the business to rebuild in private before we all invest.
AirBnb has turned into AirBnBroke this Spring. It laid off 25% of its workforce as the pandemic decimated travel trends. There are still few people wishing to live in other people’s homes, and a lot of hosts are getting repossessed. The timing of this IPO is suspect.
If a business lists on the stock market, it’s doing so to raise money from first-time investors, and to cash out insiders and investors from earlier funding rounds. AirBnB doesn’t need cash for exciting investment opportunities because there aren’t any in the covid era. AirBnB needs cash from this IPO to stay alive.
This is the best case scenario. It’s that or insiders know the business is mortally wounded already, and that it’s now or never for them to squeeze out a payday. Who knows? The industry might perk up before they get round to listing.
AirBnB is telling the investing world to cobble together some lose change and get ready for the stock we’ve all been waiting for. It will be 4-6 weeks from now until an S-1 form is released showing AirBnB’s financials and strategy. It will then be in 2021 that AirBnB is listed on the New York Stock Exchange under ticker; BNB. Will you be going long or short?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.