The View from 5th Avenue

The View at Two – 10 December 2020

The Air Up There – Absurd. Insane. Flabbergasting. These are just some of the descriptors we’re hearing both internally and externally during a week that we may be looking back on in hindsight. You’d think DoorDash cured cancer rather than delivers food (amongst a crowded field I might add) and Airbnb came up with an antidote to stop aging instead of it’s actual purpose. Christmas isn’t just for kids and that’s never been more apparent as market pros and amateurs alike gobble up the latest shiny toy. Even the latest minted billionaire, ABNB CEO, could barely hold back his astonishment when he heard the first indication. This isn’t frothy – that’s a latte. This is an exploding dishwasher. It doesn’t’ hurt that these companies are releasing a pittance of their equity; FOMO is going next level. It’s the retail investor at home with spare cash driving the price via low and zero trading commission platforms like Fidelity and Robin Hood. Don’t believe me? See below – that’s a pretty sweet Buy/Sell ratio. It looks like the market has practically turned its back on Tesla by comparison. (it hasn’t) Our Airbnb guru loves the company but even at these lofty levels would have a look at Booking/Expedia as they now look cheap. And if the pricing is right, Marriott and Hilton are shorts.

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