What do you think of AirBnb IPO on 10 Dec?

As the IPO happens on 10 dec, which is my birthday, i felt like i should buy some due to this coincidence. (Treat it as birthday present lol)

How would you start entering the AIRBNB?

eg: buy with 10%-30% of your planned budget for airbnb. Wait for hype to go down then start dollar cost average?

Discussion (4)

What are your thoughts?

Kok Hong

08 Dec 2020

No rush, can buy after it's listed. Long term wise should be ok, short term travel won't rise yet

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Naveen

08 Dec 2020

I think it may be overpriced based on the chatter on Twitter. Please do read this analysis https://thegeneralist.substack.com/p/airbnb-the... and this https://seekingalpha.com/article/4392734-sharin... to know more about the possible downside, unknowns etc..

A quick reference on the valuation from above article.

"If equity is priced at <$28 billion (20% percentile): A bargain

If equity is priced between $28 & $33 (40th percentile) billion: A solid buy
If equity is priced between $33 (40th percentile) & $38 billion (60thpercentile): A fair value
If equity is priced between $38 (60th percentile) & $44 billion (80thpercentile): Too richly priced
If equity is priced $44 billion: Over valued"

Personally I may start with a 2-5% of my portfolio allocation, if its not over valued.

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