THE GHOST TRAIN
THE FINANCE GHOST: Not quite ready to check into Airbnb — yet
Despite strong revenue and margin growth, Airbnb’s valuation and share price still leave investors cautious
Airbnb will always fascinate me, even if it’s not something that I’ve been willing to invest in yet due to valuation. I’m writing this from an Airbnb in Knysna, where one of the bedrooms has a broken door, and the en suite bathroom in the other room doesn’t have a working light. The Wi-Fi is good, the location is sensible and safe, and the bed is comfortable. Overall, for the price, it was a decent deal. It was also a reminder that Airbnb hosts really cannot charge the same as hotels do, even though some try to. There’s a far more forgiving approach to things that don’t work in an Airbnb than in a hotel — but only because of the pricing.
Airbnb was founded during the global financial crisis as a way for people to earn additional money. Now, the company provides a platform that allows for a range of users, from more casual providers of accommodation to professional hosts who have several properties. Much like Uber and many other platform businesses that have rapidly developed i...
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