Latest / Earn Your Leisure / Study Hall: Is it the End for Airbnb & Uber? Examining the Crash

Transcript

Study Hall: Is it the End for Airbnb & Uber? Examining the Crash · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: Let's talk about this potential bubble forming in the airbnb
• 1:04
  Speaker 3: market and how resilient is the company's business model in
• 1:08
  Speaker 3: economic down This is actually a stock and real estate
• 1:10
  Speaker 3: question because we can talk about Airbnb stock, which has
• 1:14
  Speaker 3: not performed at extremely high levels. And we can also
• 1:18
  Speaker 3: you know, I'm investing in Airbnb hasn't worked out. Yeah,
• 1:25
  Speaker 3: I brought Airbnb a long time ago.
• 1:28
  Speaker 4: You said it.
• 1:29
  Speaker 3: Yeah, it's a little bit. It's not it's not a
• 1:31
  Speaker 3: lot of Yeah, it's it's oh, it's not a lot
• 1:33
  Speaker 3: of money. That's why I looked over like, what it's
• 1:36
  Speaker 3: not a lot of money.
• 1:36
  Speaker 4: But yeah, it hasn't. It hasn't worked out. I'll tell
• 1:40
  Speaker 4: you that much.
• 1:41
  Speaker 5: We're pressure in you don't call me on this one.
• 1:44
  Speaker 4: I forgot, I forgot.
• 1:45
  Speaker 3: But yeah, Airbnb is currently at one hundred and thirty
• 1:50
  Speaker 3: two dollars. I think it debuted in twenty twenty at
• 1:56
  Speaker 3: one hundred and thirty nine dollars.
• 1:58
  Speaker 4: Then it got all the way up to two hundred
• 1:59
  Speaker 4: and nineteen twelve.
• 2:04
  Speaker 3: And then yeah, it's just been kind of like moving
• 2:06
  Speaker 3: sideways dropping ever since.
• 2:07
  Speaker 6: It's about to be back to where ibo that Airbnb?
• 2:11
  Speaker 3: We speaking of investments, we got, Wow, we got somebody.
• 2:15
  Speaker 3: Actually I'll talk about that later. Airbnb is a very
• 2:19
  Speaker 3: interesting company because it's it's revolutionized the world really and
• 2:25
  Speaker 3: you know, has given hotels really a run for their money.
• 2:29
  Speaker 3: It's really the uber of hospitality, and you know where
• 2:33
  Speaker 3: anybody can now like how uber anybody could have became
• 2:36
  Speaker 3: a cab driver. Now anybody, you know, you can just
• 2:39
  Speaker 3: rent your house or rent your apartment. Brilliant idea. It's
• 2:41
  Speaker 3: actually one of the best ideas that I think I've
• 2:44
  Speaker 3: ever heard of. But like all good things, there's going
• 2:47
  Speaker 3: to be challenges, and uh, the hospitality lobby extremely strong,
• 2:52
  Speaker 3: and they have attacked them and they have they have
• 2:54
  Speaker 3: successfully caused them.
• 2:56
  Speaker 4: Lots of issues. A lot of cities have.
• 2:58
  Speaker 3: Banned airbnb's, a lot of buildings have been airbnb, a
• 3:01
  Speaker 3: lot of regulation. You can only airbnb half the year,
• 3:05
  Speaker 3: you can't sublease the Airbnb is. They've they've faced a
• 3:08
  Speaker 3: lot of issues. So academics actually even posted it. I
• 3:12
  Speaker 3: got the screen beach his radar. So yeah, let's talk
• 3:14
  Speaker 3: about it. Let's talk about it. You want to go
• 3:16
  Speaker 3: over to the cities, Okay, So these are the cities.
• 3:20
  Speaker 3: Top ten cities for Airbnb collapse. Orlando, Florida down thirty
• 3:24
  Speaker 3: to thirty four percent, Panama City down thirty four percent, Seattle, Washington,
• 3:27
  Speaker 3: down thirty five percent, Lakeland, Florida down thirty five percent.
• 3:31
  Speaker 3: New Orleans down thirty seven percent, Breakridge, Colorado, down thirty
• 3:35
  Speaker 3: seven percent, Denver, Colorado, down thirty eight percent, Nashville down
• 3:37
  Speaker 3: thirty nine percent, Southbury, Maryland thirty nine percent, Asheville, North
• 3:42
  Speaker 3: Carolina forty two percent, San Antonio, Texas forty three percent,
• 3:46
  Speaker 3: Myrtle Beach, South Carolina down forty five percent, Austin, Texas,
• 3:49
  Speaker 3: down forty six percent, Phoenix, Arizona, down forty seven percent,
• 3:53
  Speaker 3: And the number one is Severnville, Tennessee is down forty
• 4:01
  Speaker 3: seven Who is paying sixty two hundred dollars to stay
• 4:04
  Speaker 3: in Sarahville, Tennessee.
• 4:05
  Speaker 5: What's around there?
• 4:07
  Speaker 4: That must be I don't know what'sn't that's.
• 4:09
  Speaker 5: Going on over there, but all right, somebody let us
• 4:12
  Speaker 5: know if.
• 4:13
  Speaker 7: A our journalistic integrity said this data is cute, which
• 4:19
  Speaker 7: it can be. My larger point that I do want
• 4:21
  Speaker 7: to address though, versus the stock, and then we can
• 4:25
  Speaker 7: go to the business model. I don't think the Airbnb
• 4:27
  Speaker 7: stock is dead, but I think it has been severely affected,
• 4:31
  Speaker 7: like you said, by legislation. So number one, like, if
• 4:33
  Speaker 7: you don't have legislation on your side, you definitely don't
• 4:36
  Speaker 7: want to be attacked. If it's not going to be
• 4:37
  Speaker 7: in your favor. Airbnb is a great idea that it's
• 4:41
  Speaker 7: probably poorly executed and as a beneficiary of a ton
• 4:47
  Speaker 7: of funding, but the management team isn't reflective of the
• 4:50
  Speaker 7: amount of funding that they were receiving.
• 4:53
  Speaker 5: Stock is on the up and up a little bit.
• 4:55
  Speaker 7: Everything is bounced up this year just because hedge funds
• 4:58
  Speaker 7: and pension funds have to rotate money, so that's not
• 5:01
  Speaker 7: really an indicative of their performance. I think they need
• 5:05
  Speaker 7: to change some of these rules, Like, yes, it was
• 5:08
  Speaker 7: an innovative idea to disrupt, but also when you try
• 5:11
  Speaker 7: and disrupt the market, the existing players that are there
• 5:15
  Speaker 7: are going to push back heavily. Hotels of justed incredibly well.
• 5:19
  Speaker 7: And let's be honest, Airbnbs are not the safest thing
• 5:22
  Speaker 7: to be in. So if there's a chance of something that,
• 5:25
  Speaker 7: like if you have a prominent rapper like Pop Smoke
• 5:27
  Speaker 7: Die in one of your properties, And on top of that,
• 5:30
  Speaker 7: if I get one in Atlanta, I gotta pay a
• 5:32
  Speaker 7: two hundred and fifty dollars cleaning fleet fee.
• 5:35
  Speaker 5: I'm like Brian going on vacation a fucking mop No,
• 5:38
  Speaker 5: I'm sorry.
• 5:38
  Speaker 7: There has to be fundamental changes in their business in
• 5:42
  Speaker 7: order to make Airbnb viable Uber, Airbnb, vrbo. Some of
• 5:50
  Speaker 7: those businesses come at the tail end of the last
• 5:53
  Speaker 7: cycle of social media or web two point zero.
• 5:56
  Speaker 5: The business models just are not as strong. I don't
• 6:00
  Speaker 5: like the stock.
• 6:02
  Speaker 7: The stock should hit one forty then slide back to
• 6:04
  Speaker 7: somewhere around between one ten and one hundred. It probably
• 6:07
  Speaker 7: won't be back to two nineteen in a long time.
• 6:08
  Speaker 7: It's one of the stocks that got affected by inflation. Now,
• 6:14
  Speaker 7: could they make an adjustment, some changes in management restructuring.
• 6:18
  Speaker 5: There's a lot that they can do.
• 6:20
  Speaker 7: There's some people probably from HG and Hilton that they
• 6:23
  Speaker 7: probably should hire to run the company or add to
• 6:26
  Speaker 7: their board that could give them a stronger push. But overall,
• 6:30
  Speaker 7: I don't like the stock. And for those that have
• 6:32
  Speaker 7: been doing Airbnb for a while, as there's still ways
• 6:35
  Speaker 7: to because I know Matt gonna cook the substante shot
• 6:38
  Speaker 7: out the MG. Are there still ways to be profitable
• 6:42
  Speaker 7: in airbnbes, but at scale.
• 6:45
  Speaker 5: Once again, same with colleges.
• 6:46
  Speaker 7: The premise of just renting apartment anywhere and you can
• 6:49
  Speaker 7: lease it and make money is not as promising or
• 6:53
  Speaker 7: lucrative as was once proposed in twenty eighteen, twenty nineteen,
• 6:57
  Speaker 7: and twenty twenty, and for that reason.
• 6:59
  Speaker 4: I do not like.
• 7:01
  Speaker 6: This episode is brought to you by P and C Bank.
• 7:04
  Speaker 6: A lot of people think podcasts about work are boring,
• 7:07
  Speaker 6: and sure they definitely can be, but understanding a professionals
• 7:10
  Speaker 6: routine shows us how they achieve their success little by little,
• 7:14
  Speaker 6: day after day. It's like banking with P and C Bank.
• 7:18
  Speaker 6: It might seem boring to safe plan and make calculated
• 7:21
  Speaker 6: decisions with your bank, but keeping your money boring is
• 7:24
  Speaker 6: what helps you live or more happily fulfilled life. P
• 7:28
  Speaker 6: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly
• 7:33
  Speaker 6: Boring since eighteen sixty five is a service mark of
• 7:35
  Speaker 6: the PNC Financial Service Group, Inc. P and C Bank
• 7:39
  Speaker 6: National Association Member FDIC erness What's Up? You ever walk
• 7:45
  Speaker 6: into a small business and everything just works like the
• 7:49
  Speaker 6: checkout is fast, the receipts are digital, tipping is a breeze,
• 7:53
  Speaker 6: and you're out the door before the line even builds.
• 7:56
  Speaker 6: Odds are they're using Square? We love supporting business that
• 8:00
  Speaker 6: run on Square because it just feels seamless, whether it's
• 8:03
  Speaker 6: a local coffee shop, a vendor at a pop up
• 8:05
  Speaker 6: market or even one of our merch partners. Square makes
• 8:08
  Speaker 6: it easy for them to take payments, manage inventory, and
• 8:12
  Speaker 6: run their business with confidence, all from one simple system.
• 8:16
  Speaker 6: If you're a business owner or even just thinking about
• 8:19
  Speaker 6: launching something soon, Square is hands down one of the
• 8:22
  Speaker 6: best tools out there to help you start, run and grow.
• 8:26
  Speaker 6: It's not just about payments, it's about giving you time
• 8:29
  Speaker 6: back so you can focus on what matters most ready.
• 8:32
  Speaker 6: To see how Square can transform your business, visit Square
• 8:35
  Speaker 6: dot com backslash, go backslash eyl to learn more that
• 8:40
  Speaker 6: Square dot com backslash, go backslash eyl. Don't wait, don't hesitate.
• 8:45
  Speaker 6: Let's Square handle the back end so you can keep
• 8:48
  Speaker 6: pushing your vision forward.
• 8:51
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 8:55
  Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
• 8:59
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 9:03
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 9:07
  Speaker 1: some of the heinous migrant criminals caught because of President
• 9:11
  Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 9:15
  Speaker 1: Secretary of Homeland Security under President Trump. Attempted illegal border
• 9:19
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 9:23
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 9:26
  Speaker 1: are here illegally, your next you will be fine nearly
• 9:30
  Speaker 1: one thousand dollars a day. Imprisoned and deported, you will
• 9:34
  Speaker 1: never return. But if you register using our CBP home
• 9:38
  Speaker 1: app and leave now, you could be allowed to return legally.
• 9:42
  Speaker 1: Do what's right, leave now. Under President Trump, America's laws,
• 9:47
  Speaker 1: border and families will be protected.
• 9:49
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 9:52
  Speaker 3: Airbnb's stock So, like I said, business model Airbnb, Uber,
• 9:56
  Speaker 3: it's kind of similar and new stock has actually performed
• 9:58
  Speaker 3: kind of similar too. Uber has been sideways since it's open.
• 10:02
  Speaker 3: It's went up and.
• 10:03
  Speaker 4: Then came back down and kind of like cardiac.
• 10:05
  Speaker 3: Chart yep, margin in both businesses. All right, So Uber
• 10:11
  Speaker 3: is a bad stock. Also, are they coming to invest us?
• 10:16
  Speaker 4: Not currently not currently.
• 10:18
  Speaker 3: Uber socks piece of shit, respectfully, respectfully, respectfully.
• 10:24
  Speaker 5: Great innovation.
• 10:25
  Speaker 7: Okay, this is well, somebody is equivalent of me using
• 10:29
  Speaker 7: nineteen ninety moves in a twenty twenty three NBA environment.
• 10:34
  Speaker 6: Yes, man, there's people are gonna say, like, look they
• 10:37
  Speaker 6: weren't profitable.
• 10:38
  Speaker 5: They finally are profitable. Why isn't this good? Okay, I'll
• 10:45
  Speaker 5: answer that, And now I won't even lean on my.
• 10:49
  Speaker 7: Two favorite cards, Apple or Microsoft if they're just not
• 10:52
  Speaker 7: profitable and they're barely better than let's say, like when
• 10:57
  Speaker 7: let's just take real estate, we're gonna say Airbnb is
• 10:59
  Speaker 7: are estate company? Are they better than let's say McDonald No,
• 11:03
  Speaker 7: not abb I'm saying Uber. Are they better than Tesla? No,
• 11:09
  Speaker 7: we can argue, but they're different. They're different companies though
• 11:13
  Speaker 7: Uber ubert is Uber?
• 11:17
  Speaker 5: Go ahead?
• 11:18
  Speaker 4: How many? How many times a month do you use it?
• 11:19
  Speaker 2: Uber time?
• 11:22
  Speaker 4: Exactly?
• 11:22
  Speaker 5: That doesn't mean that it's a good.
• 11:24
  Speaker 3: The problem marginal, terrible and Uber eats forget about it.
• 11:26
  Speaker 5: Oh boy, got a pot back on that stove.
• 11:31
  Speaker 3: You know what I'm saying, it's a very useful. It's
• 11:33
  Speaker 3: a very it's a very it's very useful. Well that
• 11:36
  Speaker 3: might be an issue, but that it's very Most people
• 11:41
  Speaker 3: use Uber all the time.
• 11:42
  Speaker 5: Oh I forgot that.
• 11:46
  Speaker 6: Yeah, Yeah, we just we use a lot.
• 11:53
  Speaker 8: It's tough when you have relationships, you use Uber and
• 12:03
  Speaker 8: so do we. And I think it's a great it's
• 12:06
  Speaker 8: a great invention.
• 12:08
  Speaker 4: For not, but you bring up a good point.
• 12:11
  Speaker 3: You bring up a good point that maybe maybe maybe
• 12:14
  Speaker 3: they needed a new CEO. And I don't want to
• 12:16
  Speaker 3: advocate for anybody lose their job, but I think that
• 12:18
  Speaker 3: the business model in Uber is very solid and very useful.
• 12:24
  Speaker 3: The profit margin thing what you what you mentioned that
• 12:26
  Speaker 3: could be that could be an issue.
• 12:28
  Speaker 4: So but half of the like, like I said, I
• 12:31
  Speaker 4: use Uber all the time. I don't.
• 12:33
  Speaker 3: You haven't used Airbnb in a long time, But I
• 12:36
  Speaker 3: use Uber all the time, and I use Uber Eats
• 12:38
  Speaker 3: even more than I use Uber car service. So I
• 12:42
  Speaker 3: feel that they have an opportunity to to be here
• 12:46
  Speaker 3: for the long. I don't see them going away because like,
• 12:48
  Speaker 3: let's think about it. If Uber goes away, nobody's catching
• 12:51
  Speaker 3: cabs anymore.
• 12:52
  Speaker 6: So like we're screwed that there's no affirmative action for cabs.
• 12:56
  Speaker 6: That's Uber, right, So think about this, right, even for
• 12:59
  Speaker 6: somebody issues that they had from a safety standpoint, I
• 13:01
  Speaker 6: know that was one of the issues they they've they've
• 13:04
  Speaker 6: addressed that right. Even now, when you're in your Uber
• 13:06
  Speaker 6: if it's not moving, you get the text messag's like
• 13:08
  Speaker 6: are you okay? You're you're your Uber hasn't. They've adjusted
• 13:13
  Speaker 6: to the safety. But it was also interesting. Is the
• 13:14
  Speaker 6: international play right Like we were watching Uber go into countries.
• 13:19
  Speaker 6: We sat down at Afro Afro crin uh In l
• 13:23
  Speaker 6: A and we were talking about uber Co and Naghana
• 13:26
  Speaker 6: and Uber coming to Nigeria. So this there's still this
• 13:29
  Speaker 6: international play that they still have room for expansion like
• 13:33
  Speaker 6: we were in Europe it was easy, like catching the
• 13:37
  Speaker 6: Uber was nothing, So there's still some room for growth.
• 13:40
  Speaker 6: I'm not so sure. I'm embarrassing. And that income is
• 13:44
  Speaker 6: down nine point one four billion.
• 13:46
  Speaker 3: Dollars for this year twenty twenty two.
• 13:51
  Speaker 4: The income was down.
• 13:53
  Speaker 3: That's surprising because like I said, I don't I don't
• 13:55
  Speaker 3: know why the income will be down.
• 13:57
  Speaker 4: People using it.
• 13:58
  Speaker 7: Yeah, some margins game and if I'm going to be
• 14:00
  Speaker 7: super transparent, any business that is operating off really thin
• 14:04
  Speaker 7: the margins.
• 14:05
  Speaker 5: Or low price they usually go through.
• 14:06
  Speaker 7: This series has went through this like the Circuit City
• 14:10
  Speaker 7: failed and went under.
• 14:11
  Speaker 5: Because it's like.
• 14:13
  Speaker 7: It's all like it works for a period of time
• 14:16
  Speaker 7: when there's an exuberance in the culture or country and
• 14:20
  Speaker 7: spending or where there's so much money slushing around, but
• 14:24
  Speaker 7: when things get tight.
• 14:25
  Speaker 5: Will the business be able to survive.
• 14:27
  Speaker 7: Usually no, and that's on the enterprise side or on
• 14:31
  Speaker 7: the B two C side. It has to even in
• 14:35
  Speaker 7: going to the episode in government contracting, just because you
• 14:37
  Speaker 7: put it in the lowest bid does not mean you're
• 14:39
  Speaker 7: gonna get the offer. Because you offer the lowest bid,
• 14:40
  Speaker 7: you may not be able to fulfilled the services needed
• 14:43
  Speaker 7: as a result. So everything, please write this down. Everything
• 14:45
  Speaker 7: in business is really about margin. Yeah, I know, I
• 14:48
  Speaker 7: get criticized and killed for my prices all the time
• 14:51
  Speaker 7: while doing a free show every week. I cannot wait
• 14:54
  Speaker 7: till for all these be pre recorded. But you need
• 14:58
  Speaker 7: a higher price point to be sustainable. Notice, even when
• 15:01
  Speaker 7: Tesla beat those deliveries deliveries, right, one of the things
• 15:05
  Speaker 7: they talked about is are we going to increase these
• 15:07
  Speaker 7: prices back so our margins are not dramatically affected. You
• 15:11
  Speaker 7: need that capital to be able to reinvest into the business.
• 15:14
  Speaker 5: So I'm glad you.
• 15:15
  Speaker 6: Brought up Tessa because that might be a way to
• 15:17
  Speaker 6: help the margins, right yep. On Tournament driving, this might
• 15:21
  Speaker 6: be away and Steve zero zero on YouTube. Yeah, I'm
• 15:24
  Speaker 6: aware that Ubers and Ghana. I was referring to the
• 15:27
  Speaker 6: gentleman who was integral in bringing the company to the country.
• 15:33
  Speaker 3: My graduates from my school being forced back drop drop
• 15:38
  Speaker 3: might drop drop.
• 15:51
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 15:55
  Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
• 15:59
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 16:03
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 16:07
  Speaker 1: some of the heinous migrant criminals caught because of President
• 16:11
  Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 16:15
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 16:19
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 16:23
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 16:26
  Speaker 1: are here illegally, your next you will be fined nearly
• 16:30
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 16:34
  Speaker 1: never return. But if you register using our CBP home
• 16:38
  Speaker 1: app and leave now, you could be allowed to return legally.
• 16:42
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 16:47
  Speaker 1: border and families will be protected.
• 16:49
  Speaker 2: Sponsored by the United States Department of Homeland Security,