Airbnb burst onto the scene and disrupted the hospitality industry in 2009, and just over 10 years later, they are announcing a long-awaited initial public offering or IPO. They are reportedly aiming to raise $3 billion and reach a valuation of $30 billion. Of course, they are contending with huge hotel names and other giants in the field. Not to mention, 2020 did a number on the company as it has to so many others in the travel and tourism industry. Despite all of this, I am confident in the longevity of Airbnb and am considering buying in.
Why I’m investing
I am not an expert, so please take my input with several grains of salt. As a Millennial cusp, Gen-Z rising, I am just getting into the stock market. I see Airbnb’s upcoming IPO as a great way for young people to get in on the ground floor of a potentially powerful enterprise. Now, Airbnb has lost a lot of money recently, but I think that it will come back. Personally, I can’t wait to book a room somewhere far from home and take a vacation. And that’s coming from a homebody introvert, so I can’t imagine how many people are dying to get out of their homes right now. Once things are up and running again, I feel like Airbnb could see a huge bump in revenue. Not to mention, their prices usually rival big-name hotels while the amenities offered surpass cheaper motels. I see Airbnb as being in a position to make a killing in a post-pandemic world.
Opportunity for all
Airbnb isn’t only for the consumer but for real estate investors as well! People actually use the platform to make money for themselves, and this is another reason why I don’t see Airbnb going anywhere. Millennials and GenZ are all about finding simple ways to make money and create a side hustle, so as the younger generations start to buy property, they’re going to want an easy platform to make money off of it. As long as Airbnb is good for consumers and business owners, I believe there will be room for this platform.
As I said, I am absolutely not an expert. I currently only have a few hundred dollars in my Robinhood app, but I am looking to expand my horizons and try to make some money in this crazy market. As a Millennial, Airbnb seems like a great opportunity to invest in something that I have used, and that I believe can last and even grow over the next 10 years. As a newbie, the stock market is a little bit terrifying. However, it is exciting to see these companies that sprang up only recently going public, and possibly giving us young folks some wealth-building opportunities. Let me know if you plan on investing!