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   Technology StocksPeer-to-Peer, Gig and On-Demand Economies


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From: Glenn Petersen11/25/2020 8:39:13 AM
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SEC proposes rules for giving gig workers equity

Kia Kokalitcheva
Axios
November 24 2020

The U.S. Securities and Exchange Commission has proposed rule changes that would make it possible for gig companies to give equity to their workers as part of their compensation if they meet certain requirements.

Why it matters: This is something gig companies including Uber and Airbnb have asked the SEC to do over the years as a way to share their companies' upside with these non-employees.

-- Instead, both Uber and Lyft gave certain long-time drivers cash and the ability to purchase IPO shares when they went public, while Airbnb is putting 9.2 million shares into an endowment it will use to finance initiatives for hosts.

Details: The five-year pilot program would allow gig companies to issue equity as long as it's no more than 15% of a worker's compensation during a 12-month period, and no more than $75,000 in value during a 36-month period (based on the share price when it's issued).

-- Individuals cannot negotiate whether they want equity or cash in exchange for their services.

-- The company has to reasonably try to prevent gig workers from reselling the equity.

-- These requirements also apply to public companies, except for the prohibition on stock reselling.

Between the lines: While the document doesn't mention home-sharing hosts (like those on Airbnb), it does specify that marketplaces for the permanent sale of real estate, "as opposed to the temporary rental of real estate," would not qualify. Airbnb, which is in its pre-IPO quiet period, declined to comment.

Yes, but: Commissioners Allison Lee and Caroline Crenshaw opposed the proposal in a joint statement, arguing that the commission is making this exception for gig companies but not for other alternative workers such as freelancers, temporary help agency workers, and on-call workers despite mentioning them in its discussion of the modern work landscape.

What's next: The proposal is open to public comment for the next 60 days, after which the SEC will assess whether to move forward.

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From: Glenn Petersen12/1/2020 8:22:39 AM
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Airbnb seeks valuation of up to $35 billion in its IPO

PUBLISHED TUE, DEC 1 20207:42 AM EST
UPDATED 16 MIN AGO
Steve Kovach @STEVEKOVACH
CNBC.com

KEY POINTS

-- Airbnb filed an updated S-1 Tuesday ahead of its expected IPO later this month.

-- Airbnb says it expects to price between $44 and $50 per share.

-- That would give Airbnb a valuation of up to $35 billion, up from its peak private valuation of $31 billion.

Airbnb plans to price at $44 to $50 per share in its IPO, giving it a valuation of up to $35 billion on a fully diluted basis, according to a new filing the company submitted to the SEC Tuesday. The company seeks to raise about $2.5 billion in the IPO. Existing investors seek to sell $96 million worth of stock in the IPO.

Airbnb’s last private valuation was $18 billion, after it raised $2 billion in debt earlier this year as the company struggled in the early months of the pandemic. That was nearly half its peak private valuation ($31 billion) from 2017.

The company will list on the Nasdaq under the ticker “ABNB.” It’s expected to hold its IPO later this month. Airbnb’s roadshow, where it makes its pitch to investors, will start Tuesday.

Airbnb released its first S-1 last month, reporting net income of $219 million on $1.34 billion in revenue in the third quarter of this year, down about 19% from the year before. Like most travel companies, Airbnb has seen a drop in business due to the Covid-19 pandemic.

But after cutting about 25% of its staff, or about 1,900 employees, in May, Airbnb saw its business quickly bounce back later in the year. That was thanks to a surge in rentals in rural areas as people looked for safe escapes amid the pandemic. The company was originally expected to IPO in the first half of the year, but the pandemic upended those plans.

But with markets ripping higher on positive vaccine news and President-elect Joe Biden’s election win last month, it’s a good environment for companies to go public now.

In addition to Airbnb, DoorDash, the maker of the popular food delivery app, is also expected to IPO this month. DoorDash released its updated S-1 filing Monday, and is seeking a valuation of up to $32 billion in its debut. That’s double DoorDash’s last private valuation of $16 billion in June.

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To: Glenn Petersen who wrote (808)12/1/2020 11:25:53 AM
From: rogermci®
   of 853
 
Wonder how much per bed that is?

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To: rogermci® who wrote (809)12/2/2020 1:42:07 PM
From: Glenn Petersen
1 Recommendation   of 853
 
Today, the idea does not seem so crazy after all. Our more than 4 million hosts now offer everything from a private room in their home to luxury villas, from one night to several months at a time. Hosting has expanded from homes to now include experiences that can be taken in cities all over the world, or even online. In more than 220 countries and regions around the world, our hosts have welcomed over 825 million guest arrivals and have cumulatively earned over $110 billion. “Airbnb” has become synonymous with one-of-a-kind travel on a global scale.

S-1/A (sec.gov)

Ignoring the fact that an individual host is probably offering multiple beds, the $35 billion valuation values each host at $8,750 per host.

Plus, no capital costs.

The cost of building a new hotel can range from $75,000 to $600,000 per room, depending on how many stars you want.

The national average range is $13,000,000 to $32,000,000, with most people spending around $22,100,000? on a 3-star hotel with 100 rooms. At the low end of the spectrum, it is possible to build a 2-story motel for $7,500,000, while at the high end, you can spend more than $60,000,000 on a luxury 5-star hotel.

2020 Cost to Build a Hotel | Hotel Construction Costs (fixr.com)

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To: Glenn Petersen who wrote (810)12/2/2020 5:43:55 PM
From: rogermci®
   of 853
 
Excellent nutshell analysis. On IPO day my intention is to buy a half of a position, but my gut tells me I won't get a fill on the other half anytime soon. Thanks for summarizing.

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To: rogermci® who wrote (811)12/3/2020 1:40:54 PM
From: Rarebird
   of 853
 
We used airbnb when we drove from NYC to Henderson, NV in 2017. It was a very good expeience in PA, TN, TX and NM. We hooked up very quickly and the stay was very enjoyable.

I would buy the IPO too.

There is going to be an outburst of energy, spending and strong recovery next year. Many stocks will soar. Maybe January gets a bit choppy and volatile - nothing serious, though

Next week huge rally.

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To: Rarebird who wrote (812)12/6/2020 11:57:22 PM
From: Glenn Petersen
   of 853
 
Airbnb Boosts IPO Price Range to Between $56 and $60 a Share

New price range for home-rental company’s public debut equates to $39 billion to $42 billion, fully diluted

By Maureen Farrell
Wall Street Journal
Updated Dec. 6, 2020 9:00 pm ET



Airbnb co-founder and CEO Brian Chesky at a 2018 event in San Francisco.PHOTO: ERIC RISBERG/ASSOCIATED PRESS
--------------------------------------------------

Airbnb Inc. plans to boost the proposed price range of its initial public offering, the latest sign that the red-hot IPO market is ending the year on a high note.

Airbnb is boosting the range to between $56 and $60 a share, from $44 to $50, people familiar with the matter said. The new range would give the home-rental company a valuation of as much as $42 billion on a fully diluted basis and including proceeds from the offering.

DoorDash Inc., the food-delivery company that is expected to debut Wednesday, the day before Airbnb, plans to price its shares at the high end of or above its range of $90 to $95 a share—already raised from between $75 and $85, people familiar with the offering said. That would give the San Francisco company, the largest among its peers, a valuation of as much as $36 billion or more, on a fully diluted basis and including proceeds from the offering.

Taken together, the developments are the latest sign that the market for new issues, already at a record in terms of money raised in the U.S., is set for a climactic ending to the year. The market has been buoyed by soaring stocks, including those that have recently made their own debuts.

So far this year, more than $140 billion has been raised in initial public offerings on U.S. exchanges, far exceeding the previous full-year record high set at the height of the dot-com boom in 1999, according to Dealogic data that dates back to 1995.

Valuations of both Airbnb and DoorDash have been boosted after roughly a week of investor meetings known as roadshows.

December is typically a quiet time in the IPO market. This year there will instead be a flurry of offerings. In addition to Airbnb and DoorDash, videogame company Roblox Corp. and the parent of online retailer Wish, ContextLogic Inc., are expected to debut before the year is through.

For companies now, including Airbnb and DoorDash, roadshows have been conducted differently than they would have in the pre-Covid-19 world. Executives have been marketing their offerings to mutual funds and hedge funds in Zoom meetings rather than in the typical whirlwind tour across the country.

Both Airbnb and DoorDash and their respective underwriters will set their final IPO prices in the coming days. Morgan Stanley and Goldman Sachs Group Inc. are leading Airbnb’s IPO, while Goldman and JPMorgan Chase & Co. are leading DoorDash’s.

Write to Maureen Farrell at maureen.farrell@wsj.com

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To: rogermci® who wrote (811)12/7/2020 12:10:08 AM
From: Glenn Petersen
   of 853
 
You may find yourself chasing it on Friday.

Airbnb has always been my favorite in the sharing economy niche. A beautiful business model executed to near perfection.

About five or six weeks ago Cramer was strongly advocating buying the stock on opening day and sticking it in a drawer. He thought that there would be a pandemic discount. I think that the roadshow eliminated the discount.

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From: Glenn Petersen12/8/2020 8:26:04 PM
   of 853
 
DoorDash sells shares at $102 in IPO, pricing above range

PUBLISHED TUE, DEC 8 20205:58 PM EST
UPDATED TUE, DEC 8 20206:15 PM EST
Leslie Picker @LESLIEPICKER
Ari Levy @LEVYNEWS
CNBC.com

KEY POINTS

-- DoorDash sold shares at $102 a piece in its IPO, above its range of $90 to $95, according to people familiar with the matter.

-- Revenue at the the food delivery company jumped 268% in the third quarter to $879 million.

-- DoorDash has been one of the biggest beneficiaries of the coronavirus pandemic, which forced restaurants to close their dining rooms and move to delivery.



A DoorDash Inc. delivery person places an order into an insulated bag at Chef Geoff’s restaurant in Washington, D.C.
Andrew Harrer | Bloomberg | Getty Images
-----------------------------------------------

DoorDash, the food delivery provider that’s seen a surge in demand during the coronavirus pandemic, sold shares in its IPO at $102 a piece, pricing above its range, according to people familiar with the matter.

The offering on Tuesday values the company at $32.4 billion, based on common stock outstanding and $38.7 billion on a fully-diluted basis. The company previously said it expected to sell shares at between $90 and $95. The sources asked not to be named because the pricing is still confidential.

DoorDash is the first IPO in a late-year consumer technology wave that includes the expected debut of Airbnb later this week, followed by e-retailer Wish next week and fin-tech company Affirm and kids’ game maker Roblox this month. The companies are taking advantage of a post-election stock rally and a clear indication of investor demand for high-growth tech, which has led the market this year.

While a wide swath of software and internet companies have gotten swept up in the Covid-19 rally, few have experienced the kind of growth seen by DoorDash. Revenue in the third quarter surged 268% from a year earlier to $879 million, following growth in the second quarter of 214%. Through the first nine months of 2020, DoorDash’s order volume climbed to $16.5 billion from $5.5 billion a year earlier.

DoorDash, based in San Francisco, makes money by charging a commission to participating restaurants that can reach 30% of an order as well as a fee of a few dollars per order from consumers. DoorDash said in its prospectus that 390,000 merchants are now on the platform. That includes everything from fast food chains like Chick-Fil-A, Chipotle and McDonald’s to upscale restaurants that were forced to close their doors earlier this year and switch to takeout and delivery.

The company, which ranked 12th on CNBC’ Disruptor 50 list for 2020, has been able to cut its losses this year, but still reported a net loss for the first three quarters of $149 million, down from $534 million in the same period of 2019. DoorDash at least makes money on every order now, recording a so-called contribution margin of 23% through September, compared with a negative margin of 32% a year earlier.

DoorDash controls about 50% of the U.S. food delivery market, well ahead of rivals Uber Eats and GrubHub. The biggest overhang for the company may be uncertainty about what the business looks like in a post-Covid world, especially with a widespread vaccine rollout expected by mid-2021.

Should consumers return to eating out instead of relying on delivery, DoorDash could see business deteriorate. Meanwhile, restaurants, which tend to operate on very low margins, are constantly seeking ways to keep their costs down, and there’s technology on the market to help them accomplish that without relying on third-party apps.

As DoorDash warns in its prospectus, “The circumstances that have accelerated the growth of our business stemming from the effects of the COVID-19 pandemic may not continue in the future, and we expect the growth rates in revenue, Total Orders, and Marketplace GOV to decline in future periods.”

DoorDash CEO Tony Xu co-founded the company in 2013, in Palo Alto, California, where the service reached its first customers. Xu currently owns just under 5% of the company’s outstanding shares. SoftBank, which l ed a $535 million investment in 2018, is the largest shareholder with about 20% stake, followed by Sequoia, which owns 16%.

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To: Glenn Petersen who wrote (815)12/9/2020 12:59:30 PM
From: Glenn Petersen
   of 853
 
DoorDash skyrockets 80% in market debut, opening at $182 per share

PUBLISHED WED, DEC 9 202012:08 PM EST
UPDATED WED, DEC 9 202012:51 PM EST
Jessica Bursztynsky @JBURSZ
CNBC.com

KEY POINTS

-- Shares of DoorDash, a leading food delivery app, started trading on the New York Stock Exchange on Wednesday.

-- The stock began trading at $182 per share.

-- The company trades under the symbol “DASH.

-- ”The IPO kicks off a busy season for market debuts. Airbnb is set to go public Thursday, while Roblox and Wish are expected to go public by the end of the year.

Shares of DoorDash, a leading food delivery app, surged in its market debut on the New York Stock Exchange on Wednesday.

The company priced its shares at $102 a piece Tuesday night, above its range of $90 to $95. The stock began trading at $182 per share, giving it a market cap of $57.8 billion.

DoorDash, founded in 2013, now joins its competitors GrubHub and Uber at a key time. Food delivery has been a bright spot during the coronavirus pandemic, with people limiting their time outside of the home as much as possible.

DoorDash reported $1.9 billion in revenue for the nine months ended Sept. 30, according to its IPO filing. That’s up from $587 million during the same period last year. As its revenue grew, DoorDash also narrowed its net loss to $149 million over the same period in 2020. In 2019, DoorDash had a net loss of $533 million over the nine-month period.

In its prospectus, DoorDash said more than 390,000 merchants use the app.


The company, which ranked No. 12 on the 2020 CNBC Disruptor 50 list, trades under the symbol “DASH.” Goldman Sachs and J.P. Morgan are the lead underwriters for the offering, while SoftBank is the largest shareholder with about 20% stake, followed by Sequoia, which owns 16%.

Wednesday’s public offering kicks off a busy season for market debuts. Airbnb is set to go public Thursday, followed by e-commerce Wish next week and fintech company Affirm and kids’ video game maker Roblox this month.
DoorDash has attracted scrutiny from the attorney general of the District of Columbia on more than one occasion.

It recently reached a $2.5 million settlement with the AG’s office after facing allegations that it misled consumers on how tips would be allocated to workers. DoorDash has denied the allegations but changed its tip model since the period of time the AG cited in the lawsuit.

More recently, the DC AG’s office confirmed to CNBC it had sent a cease and desist letter to DoorDash on Tuesday, warning it to suspend plans to charge commission on its DashPass service that would exceed a fee cap set by the District.

The DC Council recently passed a law that would cap third-party delivery and pick-up service fees at 15% of the order price during a public health emergency. The Washington City Paper reported last week that restaurants were informed they would begin being charged the original rate in their contracts for DashPass, which is a premium service for frequent users in which restaurants pay to participate.

According to the notice reported by the City Paper, DoorDash told restaurants the legislation “is only applicable to Classic orders and does not apply to the DashPass program.”

In a statement Wednesday, a DoorDash spokesperson told CNBC it had decided not to charge restaurants their contractual rates for DashPass, for the time being, citing “confusion as a result of our response to the unintended consequences of the pricing regulations in Washington, DC.” They maintained DashPass is a “premium marketing offering.”

“We look forward to engaging with local policymakers to increase understanding of the impact pricing regulations have, and solutions that better serve customers, Dashers, and restaurants,” the spokesperson said.

-- CNBC’s Lauren Feiner contributed to this report.

This story is developing. Please check back for updates.

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