>> WELCOME BACK TO WAKE UP WITH
CHEDDAR IT'S A BIG WEEK ON WALL
STREET DOORDASH TO VIEWING ON
THE NEW YORK STOCK EXCHANGE
YESTERDAY, CLOSING UP MORE THAN
85 PER SE ITS DEBUT GIVING THE
COMPANY A MARKET VALUATION OF
AROUND
60 BILLION DOLLARS. AIR BNB SET
TO MAKE ITS MASSIVE DEBUT LATER
TODAY.
BUT WHAT ALL THESE COMPANIES
LIVE UP TO THE HYPE AND JOINING
US NOW IS MARINE FARRELL IPO
REPORT OVER AT THE WALL
STREET JOURNAL GREEN GREAT TO
HAVE YOU ON THIS MORNING SO
MANY BUSINESSES STRUGGLING
THROUGH THIS PANDEMIC
BUT DOORDASH HAS SHINED THE
COURT A LIVERY COMPANIES
ALREADY MORE THAN TRIPLE IN THE
FIRST 9 MONTHS OF THE YEAR.
AND IN PART BECAUSE OF A SURGE
IN NEW CUSTOMERS. HOW DOES IT
HOW DOES ITS RECENT
PERFORMANCE. HELP IN THE
ATTRACTIVENESS OF INVESTING IN
THE STOCK RIGHT OFF THE BAT.
>> IT'S DEFINITELY HELPED IN A
HUGE WAY AND AN INVESTOR THEY
CAME OUT THEY WERE THINKING OF
GOING PUBLIC MUCH EARLIER HERE
THIS YEAR. OBVIOUSLY A LOT
OF THINGS. PAUSED WITH THE
PANDEMIC BUT AS THEY POSIT
THEIR IPO PLANS THEIR BUSINESS
IT
GREW IN AMAZING WAYS I THINK
THERE THERE WAS SOME
EXPECTATION THAT
IT WOULD SURGE THERE BE AN
INFLUX OF NEW CUSTOMERS THAT
THINK IT'S GONE FAR
BEYOND THAT. SO INVESTORS WERE
INCREDIBLY EXCITED AND AND YOU
KNOW HAS IT FOLLOWING SUIT.
THEY BID UP THIS
COMPANY DRAMATICALLY BEFORE
UNDERWRITERS PRICED THE IPO
MUCH HIGHER THAN PEOPLE
EXPECTED AND THEN YESTERDAY AND
WE WATCHED IT JUST TO RACE A
RACE OUT. AND GO GO CRAZY
BASICALLY ON ITS FIRST DAY OF
TRADING.
>> THE DOORDASH HAS STRUGGLED
IN THE TO TURN A PROFIT, WHAT
IS THEIR
LONG TERM PATH TO PROFITABILITY
AND IS THERE ANY CONCERN
THAT ONCE BUT THE PANDEMIC IS
BEHIND US WHICH IS LOOKING LIKE
MAYBE 6 TO 9 MONTHS FROM NOW
THAT PEOPLE WILL GO BACK
RESUME EATING AT RESTAURANTS
AND USE THEIR SERVICES
AT LAST.
>> SO I HOPE IT'S QUICKER THAN
A 6 TO 9 DON'T WE ALL.
>> BUT THAT SAID I MEAN THEY'RE
THEY'RE IDEA. YES I THINK
THERE'S AN EXIT HAITIAN THAT
THESE
AREN'T THE TRUE NUMBERS THAT
THIS SURGING GROWTH HIGH DEBT
BUT STILL I THINK THERE'S ALSO
THE IDEA THAT YOU KNOW PEOPLE
ON THE SUB THERE IS WHERE
THEY'RE REALLY BIG AN
ACTIVE IN ARE USING THIS
SERVICE BEFORE EVEN IF THEY
SCALED BACK THEIR SORT OF ALL
THESE NEW USERS THEY'RE NOT
GOING TO LOSE.
THERE'S ALSO THE QUESTION OF
THEM GOING INTO DIFFERENT
AREAS DELIVERING THEIR GOODS IN
GOODS FROM OTHER SMALL
BUSINESSES IN THE LOCAL AREA.
SO THAT SORT OF THAT
AND THE IDEA FOR GROWTH, I MEAN
THERE'S THERE'S DEFINITELY BE
CONCERNED ABOUT IT, I MEAN
OBVIOUSLY INVESTORS ARE IN THAT
CONCERNED THEY WERE WILLING TO
SERVE. BY ANYWAY, BUT I THINK
THE LONGER TERM PATH.
PROFITABILITY IS ANOTHER
QUESTION
I MEAN I THINK ANOTHER PIECE OF
THE PUZZLE THAT GOT INVESTORS
PRETTY EXCITED IS THEY NEVER
SHOWED UP FULL-YEAR PROFITS BUT
THEY HAVE SHOWN ORDERS OF
PROFITS WHICH IS SOMETHING WE
HAVE NOT SEEN FROM UBER LIFT
SOME OF THESE OTHER BIG, YOU
KNOW CORNES SO IT SEEMS
AT LEAST THEY KNOW HOW TO GET
THERE AND YOU KNOW EVEN IF THEY
IF IT WILL BE QUESTIONABLE
WHETHER IT'S THEY CAN KEEP
DELIVERING ON PROFITS WHETHER
THEY EVEN WANT TO THEIR
QUESTIONS YOU KNOW WHERE THEY
GO NEXT. THEY'RE GOING TO WANT
TO SHOW WALL STREET THIS RUTH
THEY'RE NOT VERY INTERNATIONAL
LEGAL INTERNATIONALLY ONE
WHETHER AREA EXPAND INTO HOW
DID THEY DECIDE TO TACKLE EACH
AREA, BUT THERE'S CLEARLY
A TIME ONE OF THE OPTIMISM
AROUND WHAT'S NEXT FOR THEM.
>> OKAY WE GOTTA TALK AIR
BNB WHICH IS SET TO GO PUBLIC
TODAY, WHAT ARE YOU EXPECTING.
>> IT'S HARD TO IT'S HARD TO
TELL, BUT I MEAN IT FOLLOWS IN
LIKE
DOORDASH WHICH BY MANY
INDICATIONS, IT FEELS LIKE IT
VERY MUCH ON THE SAME
TRAJECTORY ME
ARE THEY PRICED THEIR
IPO THERE ABOUT FORT WORTH
ABOUT 47 BILLION DOLLARS BASED
ON THEIR IPO PRICE. LIKE
DOORDASH THAT JUST
JUST STUNNING RUN-UP IN THEIR
VALUATION EARLIER THIS YEAR THE
BEGINNING OF THE PANDEMIC THEY
THOUGHT THEY WERE FIGHTING FOR
SURVIVAL, BRIAN CHESKY THE CEO
OF AIR BNB
WENT OUT RAISE NEW FINANCING
JUST TO KIND OF GET THROUGH AND
WHETHER THE PANDEMIC AND AT
THAT
POINT THAT BUSINESS IS VALUED
AT 18 MILLION DOLLARS SO TODAY.
IT'S ME NOW AS OF LAST NIGHT IT
WAS 47 MILLION DOLLARS. TODAY I
THINK THERE'S A REAL SENSE.
THERE'S JUST BEFORE E A AND IPO
MARKET IN GENERAL AND PEOPLE
SEEM INCREDIBLY EXCITED ABOUT
AIR BNB THEM PUSHING UP THEIR
PRICING AND THEN THEY PUSHED
IT EVEN HIGHER WHEN THEY THAT
THEIR PRICE RANGE WHEN THEY'RE
OUT TALKING TO INVESTORS.
LAST NIGHT THEY PRICED EVEN
ABOVE THAT. I THINK THERE'S A
SENSE THAT IT COULD REALLY POP.
>> IN TERMS OF OF THE CEO
BRIAN CHESKY A LOT OF PEOPLE
ARE CREDITING HIM WITH REALLY
GETTING THIS COMPANY THROUGH
ONE OF THE ROUGHEST TIME AND IN
ITS HISTORY. WHAT DO YOU MAKE
OF THAT AND THEY HAD TO MAKE
SO MANY THE TOUGH DECISIONS
LAYING OFF SO MUCH OF THEIR
STAFF CAN YOU JUST WALK US
THROUGH WHAT DOES LAST 9 MONTHS
HAS BEEN LIKE FOR
THE COMPANY.
>> SURE I MEAN IT'S IT'S BEEN
AN ABSOLUTELY WILD TIME I THINK
ONE OF THE KNOCKS AND BRIAN
CHEST.
>> THE LEANING INTO
THE PANDEMIC THERE'S JUST A LOT
OF FRUSTRATION FROM CERTAIN
INVESTORS AND FROM EMPLOYEES
THAT HE
HAD JUST YOU SORT OF THINKING
TODAY HE TALKED ABOUT
THE MAGIC THE WORLD OF AIR BNB
THEY'RE GOING INTO TALKING
ABOUT GOING TO TRANSPORTATION
AND AIRLINES THEY WERE GOING TO
FILM HAVE THEIR OWN FILM
STUDIOS TO
MAKE MOVIES AND THERE ARE
CONCERNS THAT THE SPENDING A
LOT IT WITH EMPLOYEES NOT GOING
PUBLIC SUMMIT, YOU KNOW THEY
HAVEN'T BEEN ABLE TO CASH AND
ON THEIR OWN STOCK IN SOME OF
THESE PEOPLE BEEN WITH THE
COMPANY SAYS ARE MORE THAN A
DECADE. AND THEN THE PANDEMIC
HIT IN MARCH AND THEN THERE'S
THIS IDEA YOU KNOW THE
BUSINESS WAS CRATERING REVENUE
FELL HAS BOOKINGS JUST KIND OF
STOPPED FOR A
MOST AND THEN IT WAS A SENSE
WHEN WILL THIS COMPANY EVER GO
PUBLIC THIS STARTING TO BE A
REAL WORRY FOR BRIAN CHESKY I
THINK IT WAS YOU KNOW WHAT'S UP
IN OUR COMPANY THEY HAD TO LAY
OFF 25% OF THEIR EMPLOYEES
ABOUT 1900 PEOPLE AND
EVEN BRIAN CHESKY TALKED ABOUT
IT VERY PUBLICLY AND SAID IT
WAS DEVASTATING
FOR HIM. AND OBVIOUSLY
DEVASTATING FOR THE
BUT THEN ALONG WITH THAT'S THE
CUT TO CUT STAFF THEY WANT TO
CUTTING A LOT OF COST THIS
GOING TO SCALE BACK ON THESE
INITIATIVES AND THEN AT SOME
POINT PEOPLE STARTED TRAVELING
AGAIN VERY MUCH IN LOCAL NEWS
MARKETS. THEY SORT OF RETOOL
THEIR BUSINESS THEY WERE
TOLD THERE AL GREEN AND IF YOU
GO ON AIR BNB DOT COM. NOW YOU
KIND OF SEE LOCALS THESE VERSUS
YOU KNOW THIS TIME LAST YEAR
PEOPLE LIVE IN POTENTIALLY
PLANNING SUMMER VACATIONS TO
EUROPE FOR A LOT OF IT WAS
INTERNATIONAL STAYS A LOT
OF IT GOING TO BE AND HE WAS
GOING TO BIG CITIES NOW IT'S
MUCH MORE GETTING AWAY FROM THE
PANDEMIC GOING WITH
YOUR FAMILY TO ADD A PLACE BY
YOURSELF NOT TO TELL IF YOU CAN
TRAVEL, SO THEY VERY MUCH
BENEFITED FROM THE WAY
TRAVEL HAS IN CLEARLY.
THEY ALSO INVESTORS ARE JUST
INCREDIBLY EXCITED ABOUT IT
IT'S YOU KNOW
WHO KNOWS IT'S UNCLEAR WHETHER
IT'S JUST A MARKET EUPHORIA
COOL LATELY RIGHT NOW THERE'S
SOMETHING GOING ON AN IPO
MARKET RIGHT NOW THERE IS A
FRENZY WE'RE GOING TO IS ACROSS
THE BOARD. BUT THERE ARE STRICT
CITED FOR AIR BNB TOO.
>> AND JUST REALLY QUICKLY ON
THAT NOTE WE ARE ALMOST OUT OF
TIME, BUT DECEMBER TYPICALLY A
PRETTY QUIET MONTH FOR IPOS
CLEARLY NOT THE CASE
THIS YEAR. DO YOU THINK THE
2021 IS ALSO BE A REALLY BIG
YEAR FOR IPOS.
>> 2021 SOUNDS LIKE IT GEARING
UP TO TO BE
CRAZY ALSO I THINK SO MANY
COMPANIES
THAT WERE THE WONDERING WHETHER
THEY WOULD GO PUBLIC
OR LAND WE ARE SEEING HOW
COMPANIES HAVE PERFORMED OVER
THESE LAST FEW MONTHS AND ARE
NOW REALLY
GEARING UP. SO THERE'S A SENSE
OF IN BANKERS AND WATCH OTHER
ADVISORS THEY'RE TALKING TO TOP
COMPANIES CONSTANTLY AND A LOT
OF THEM SEEM TO BE ACCELERATING
THEIR IPO PLANS.