Airbnb IPO: The ESG Risks

Experts highlight governance and social risks that overshadow the excitement over the online property portal website's IPO

Ruth Saldanha 9 December, 2020 | 12:14AM
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As we head into the end of 2020, investors continue to look for lucrative opportunities to end the year on a strong note. One event that investors are closely watching is this week’s Airbnb IPO.

Morningstar senior equity analyst Dan Wasiolek sees some key takeaways from Airbnb’s initial public offering filing: it has a network advantage, which means the company benefits the more people use it. It has seen a stronger recovery in travel demand versus the industry, aided by domestic road trips during the pandemic as people stay local rather than fly. Three, Airbnb’s liquidity profile appears to be strong, but it is generating losses as it builds out its network to compete with peers such as Booking.com and Expedia.

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Ruth Saldanha

Ruth Saldanha  is Senior Editor, Morningstar.ca