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Early Airbnb Investor: 'It's A Very Exciting Time'

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Early Airbnb Investor: 'It's A Very Exciting Time'

Airbnb's initial public offering comes a day after DoorDash Inc's (NYSE: DASH) successful offering, but investors shouldn't come to expect a similar 80% gain on day one, according to Tim Ringel, an early Airbnb investor and Global CEO of Spring Studios.

No Big Gains On Day One? It is nearly "unheard of" for a stock valued in the tens of billions of dollars to gain 80% on its opening day, Ringel said on CNBC's "Worldwide Exchange."

It might even be better for Airbnb's stock if it grows "a little bit" so it takes some pressure off the market, he said. 

Nevertheless, Thursday's IPO is a "very exciting time" for early and late-stage investors, Ringel said.

Related Link: How Airbnb Sold $30,000 In Obama, McCain 'IPOats' Cereal In Early Funding Days

Who's Buying The Stock? Airbnb is a "household name," and this implies that regular investors would be interested in buying the stock, Ringel said.

In contrast, he said Palantir Technologies Inc (NYSE: PLTR) has a "much more complicated" business model given its expertise in complex data.

Airbnb is essentially a marketplace where people put their homes or spaces on the platform and the company handles the back-end effort of connecting with a consumer, he said.

What's Next? Airbnb has new revenue streams it can address, including ads on its platform, Ringel said.

This could position Airbnb to include characteristics that are similar to online travel agencies and tap the multi-billion-dollar ad segment.

"The advertising part is something Airbnb hasn't tapped into."

Photo courtesy of Airbnb. 

 

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