During the most inflationary time since the Weimar Republic the asset light concept is proving to challenging as the cost of money increases and the margins decrease two stocks suffering from this are #ABNB which has lost 19% over the last 3 months.
Higher interest rates and inflation have left consumers with less disposable income, as per the recent announcement from @elon_musk in relation to expansion of the manufacturing capacity in Mexico.
#ABNB has proven a broken model where hidden margins are expressed as cleaning fees. In real local fees these are price gauging and in many cases higher than the base for the asset use, the model is broken.
When compared to #NASDAQ100 or in the case #UBER which provides an alternative and preferred transportation model for the target demographic the superiority of the ride share model becomes clear.
We are short #ABNB and neutral on #UBER preferring the second as an asset light component into our master portfolio.
Higher interest rates and inflation have left consumers with less disposable income, as per the recent announcement from @elon_musk in relation to expansion of the manufacturing capacity in Mexico.
#ABNB has proven a broken model where hidden margins are expressed as cleaning fees. In real local fees these are price gauging and in many cases higher than the base for the asset use, the model is broken.
When compared to #NASDAQ100 or in the case #UBER which provides an alternative and preferred transportation model for the target demographic the superiority of the ride share model becomes clear.
We are short #ABNB and neutral on #UBER preferring the second as an asset light component into our master portfolio.