But it’s hard to really disconnect execution from the insanity of our monetary system this year...trillions in dollars pumped into our economy, 0% rates, and a retail options frenzy has created the perfect environment for speculation on growthy tech stocks.
If you're wondering why it's been such a bad year to be in cash despite the economy crumbling around you, it's because no one knows where else to put their money. Stocks and houses are being bought with inflated dollars.
How do we know the number of dollars is inflated? Maybe there were too few before?
See: Taper tantrum.
If you think the Fed isn’t doing anything when they QE, then ask yourself why they do it.
AirBnB didn't benefit in any way. It just seems insane that we will see such a pop in their stock price.
Or am I missing something here? Does remote work means more business for AirBnB properties in the future?
They also have more “rooms” and any hotel chain without any of the capex or infrastructure costs so it’sa fantastic model that is light on cash and creates tremendous scale.
The pandemic forced them to cancel advertising, save a ton of cash, and realize that their brand is strong enough that advertising isn’t really needed in the traditional sense which improves their balance sheet for 2021 and 2022 and future years.
Meaning that the company has very little insight or control into the quality of any of their listings. So it’s always a dice roll. If the listing ends up looking nothing like the pictures, or is dirty, or you’re locked out you’re on your own, and the best you can hope for is not getting the run around from customer service and they refund you fully and/or put you somewhere else.