...and yet ABNB stock is climbing?

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John Carbone
Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes
1y
Quote from @John Underwood:
Quote from @Collin Hays:

ABNB is trading at a very expensive 34 X earnings right now.  In what world do they meet earnings expectations on August 5?  I'm normally not a trader, but I bought ABNB August 15 PUTS today.  

34x earnings? Sounds like a good stock to short.
Loading up my brokerage account to do just that 
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  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    1y

    Rest of the world still booking?  Just not in US?

    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    1y
    Quote from @Collin Hays:

    ABNB is trading at a very expensive 34 X earnings right now.  In what world do they meet earnings expectations on August 5?  I'm normally not a trader, but I bought ABNB August 15 PUTS today.  

    34x earnings? Sounds like a good stock to short.
    2Reply
    • John Carbone
      Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes
      1y
      Quote from @John Underwood:
      Quote from @Collin Hays:

      ABNB is trading at a very expensive 34 X earnings right now.  In what world do they meet earnings expectations on August 5?  I'm normally not a trader, but I bought ABNB August 15 PUTS today.  

      34x earnings? Sounds like a good stock to short.
      Loading up my brokerage account to do just that 
      2Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 996 posts · 1k+ votes
    1y

    Wall street bros will buy the hype that Chesky can put out.  Experiences!  They're going to make all the money in the world!

    Then a year from now they'll dump that and move on to the next thing.  Until they retread again like they did with experiences.  Two years from now they'll have this great new idea to triple revenue.....categories!

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    1y

    Lol I borderline despise ABNB as a company but bought a lot of stock at IPO.  Just holding.

    [email protected]813-563-0877
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  • Jon Martin
    Member since 2022 · 1k+ posts · 1k+ votes
    1y

    34X is high but nothing compared to Tesla, Palantir and many others in the tech space, which is what AirBnb essentially is. You could argue that some of that price is justifiably built in because there is still a lot of room to scale. Plus they have plenty of liquidity because they hold our earnings hostage from booking until check in and collect interest on it, which may be the most genius part of their business model. 

    That said the issues that are plaguing Airbnb and VRBO are only going to get worse as they continue to grow and will eventually lead to some harsh corrections and losses. 

    0Reply
    • Chris I.
      Gilbert, AZ · Member since 2018 · 93 posts · 42 votes
      1y
      Quote from @Jon Martin:

       Plus they have plenty of liquidity because they hold our earnings hostage from booking until check in and collect interest on it, which may be the most genius part of their business model. 

      Even worse, If you do a mid-term mutli-month stays, they pay you out over time at the start of each month...  So they can sit on your cash for months even after the stays starts
      1Reply
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