Airbnb’s IPO Filing Highlights a Network Advantage

Airbnb’s liquidity profile appears to be strong enough that solvency is a very low risk

Dan Wasiolek 17 November, 2020 | 9:07AM

Cabin in the Woods

We see four key takeaways from Airbnb’s IPO filing. One, Airbnb hosts a network advantage, as we have long believed. Two, Airbnb has seen a stronger recovery in travel demand versus the industry, aided by domestic road trips, as has been our expectation since the early days of the pandemic. Three, Airbnb’s liquidity profile appears to be strong enough that solvency is a very low risk. Four, Airbnb is generating losses, as it wisely builds out its network to compete with narrow-moat peers 
(BKNG) and (EXPE).

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About Author

Dan Wasiolek

Dan Wasiolek  Dan Wasiolek is a senior equity analyst for Morningstar.

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