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No. Airbnb can sell more shares tomorrow at $150 if they wanted to. OTOH if they gambled and set their price at $150 and the stock tanked it would screw over sh
by tempsy 6y ago
No. Airbnb can sell more shares tomorrow at $150 if they wanted to. OTOH if they gambled and set their price at $150 and the stock tanked it would screw over shareholders who are taxed based on the IPO price and would be underwater immediately.
The IPO is just one transaction in one point in time. They aren’t losing sleep over this.
- raldi 6y agoI guess that's the root of our disagreement; I would give an emphatic Yes to my question above, and I think all our other differences of opinion stem from there.
- tempsy 6y agoThere’s nothing to “regret” when the pop doesn’t impact how much you were able to raise.
- ISL 6y agoDecisions are best evaluated in the context in which they were made. If you, after best-effort due-diligence, concluded that a sale for $1 was an okay/good deal, then $1 is great. It is much easier, in the long run, to be happy for the person who unlocked $499 in value on that baseball card than it is to turn inward and feel awful for the $499 you "missed out on". If you had no idea that such a thing was possible, why feel bad? I missed out on buying AMZN at IPO prices, as did most of humanity, but I don't feel bad about it. The company could have easily failed. It didn't plan to turn a profit ... ever. AirBnB's price could fall far below the IPO price in the next few months. If so, the IPO-pricing will look like genius in retrospect.