The Case For Airbnb’s $50 Billion IPO In 2018

Very few companies in the private tech growth asset class have the growth and disruptive potential of Airbnb. Airbnb started as an online marketplace where users could rent out surplus or unused space inside their homes to host travelers. Today, Airbnb is well on its way to becoming the single largest disruptor in the $2 trillion-plus travel and tourism industry in the 21st century. With a $30 billion implied valuation, Airbnb is more valuable than some global hotel chains (e.g., Hilton and Hyatt), leading airlines (e.g., United Airlines and American Airlines), and online travel companies (e.g., Expedia and Ctrip).

Investors certainly have plenty of reasons to be cautious including competition, regulatory issues, and of course the most important one, the valuation. However, I believe that Airbnb has a credible case to go public at a $50 billion valuation or more, for the following reasons: 1) Airbnb faces a large and fragmented market; 2) Airbnb benefits from secular, demographic, and cultural tailwinds; 3) Airbnb is currently a clear leader in alternative accommodations space; 4) Airbnb has lots of ways to grow its business; and 5) Airbnb benefits from marketplace-style network effects. A complete analysis of a possible Airbnb IPO including a survey of 5,500 online travelers is available here.

This Tiger Cub Giant Is Betting On Banks And Tech Stocks In The Recovery

D1 CapitalThe first two months of the third quarter were the best months for D1 Capital Partners' public portfolio since inception, that's according to a copy of the firm's August update, which ValueWalk has been able to review. Q2 2020 hedge fund letters, conferences and more According to the update, D1's public portfolio returned 20.1% gross Read More

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By Rohit Kulkarni, Managing Director, Private Investment Research at SharesPost via PitchBook