【Viper Deep dive】 Airbnb Growth Opportunity of an Era

Executive summary:

The fundamental of internet investment is about monopoly. We believe that the core investment value of Airbnb is to become the next-generation business travel monopoly platform. Short-term rental B&B is a new trend and a new direction. Its growth momentum includes:

1. change of the consumption attitude of the Millennials

2. with WFH (work from home) and online class, urban dwellers are leaving the city and looking for short-term rentals

Airbnb lays great emphasis on design and operation and has built a strong host network. The short-term rental platform is a long-tail platform on both sides with diverse host supplies and various guest demands. A closed-loop platform can be built through the largest host supplies in the world, forming a virtuous cycle that keeps all potential competitors at bay. Over the years, the number of guests (travelers) increases the frequency and the total number of using Airbnb, which enables Airbnb to become the next-generation OTA to replace companies like Booking.com and Expedia.

Different from OTA platforms, Airbnb can control the end customer. The customer experience is completed in one platform, which significantly increases brand awareness. The brand effect is the key to long-term competitiveness.

In terms of trading, with the current value being overly high, the investor can short sell when the lock-up period expires. The investor can open a position for long-term investment when the price drops to a reasonable level. The current stock price leaves no room for growth in the next 1-2 years while a large amount of investment fund in the primary market is willing to exit. Significant selling pressure is expected after the lock-up period expires, leading to an opportunity to open a position.

For the more detailed analyst, Please Down load our 50 pages deep dive on Airbnb dowbelow.

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