i own square, i'm ready to buy paypal that's why i had to put my phone down. >> scott >> uber consolidating the big breakout that started december 1st. i think this is if you missed it, you get an opportunity to buy. >> thanks, everybody good to see all of you i'll see you on "power lunch" in a little bit "the exchange" begins right now. >> thank you, scott. hi, everybody. welcome to "the exchange." it's 1:00 p.m. on wall street and airbnb has still not opened for trading. the mega ipo is set to more than double when it finally opens it priced at 68 last night, indicated as high as 1$155 at on point this morning here's the latest indication it's now above that. $156.30, with a decimal point, that tells me we're getting pretty close here. we'll hit the fundamentals, trader mentality as this is the

second straight day for monster moves for the year's most anticipated ipos with me now are deirdre bosa, leslie picker and dom chu. >> very good question. i was just asking about this with a source on the phone about 30 seconds ago, before the show started. it's really complicated. basically you have $3.5 billion of stock to allocate that was step one this morning where they had to make sure everybody that received allocations obtained those allocations. now comes the challenge of figuring out which price to open at so it's stable, so that you can make sure that the ipo kicks off smoothly and you don't open at the highs and go down from there. morgan stanley is the stabilizing agent here and one challenge is they have a lot of buy orders and not enough sell orders to match with it people are trying to wait out -- the sellers are trying to see

how far up this thing can go before showing their hand and taking that price by which to sell so, that's kind of why you're seeing -- i wouldn't say a delayed open but taking longer to open this one they do only have three hours to go i'm told it was supposed to be about 1:30, it could be a little longer than that because they don't have that exact price at this time. >>. >> is is it going to open before the close at this point? let's talk about the valuation here at $68 a share last night, this was a $47 billion company. so, you talk about more than doubling that at this point. we're basically talking about $100 billion company at the ipo? >> yes keep in mind that over the summer, its valuation was slashed to about $18 billion, so you've already, even before it got to its opening trade, the

astronomical jump in valuation the same thing we saw with doordash, which you kept looking at the screens and thinking, how can this be. i think a lot of people had that sentiment. what i can tell you from living in the bay area over the last four years, companies like airbnb and doordash are able to separate themselves partly because they have been private for so long. we used to wring our hands over the fact that perhaps their best growth days were in the past they have become well-known household names. if you think that the dijs tal transformation we have seen accelerated amid the pandemic opens up their total addressable market, you think these trends they are tapping into are here to stay, maybe that's worth that much money i talked about that this morning exactly and asked about what travel looks like going forward. have a listen. >> travel is never going to look like it did in january because

of the world is never going to look like it did in january. and i think what it's going to mean is travel will get redistributed to thousands of cities and i think people are going to stay longer and looking for a more intimate, awe then tis experiences. anyone that provides that, i think is going to be a part of this bright future for travel. >> there's in idea that perhaps before the pandemic when people were willing and wanted to stay in hotel rooms, they would be valued more highly airbnb, if you think people are going to continue to look at home rentals and people are going to continue to look at food, perhaps these are the next big giants >> to me the interesting discussion isn't so much, what was it worth at the start of the year, what is it worth post-pandemic, it's what is it worth last night and today same thing with doordash it's $100 billion company 12 hours later. i don't think so what gives >> to dovetail off what deirdre was just saying, so much of the

market is driven around relativity not just from a time sequence but with regard to its peers oftentimes in market, whether it's real estate or the stock market, you look at compare aable companies to see if there's any kind of a valuation you can glean from them. i don't know there's not a lot of -- the comparability is tough these are disruptive type companies but with airbnb,ist worth keeping some numbers in perspecti perspective. at $43 billion, it was already going to be worth more from a market value, more than marriott, expedia, hyatt $109 billion valuation that is implied with a price around what we're going to see right now at $156, you're talking about making it worth more than booking holdings and hilton almost combined at this point. this is one of those situations where if you look at the overall scheme for the travel industry,

how exactly does the pie carve up what exactly is airbnb's part of that pie there is a lot of skepticism, not because of the business model, not because of what's happening with its growth prospects, but how much is it worth if the travel and leisure industry is worth "x" dollars, what is their share in the whole process? i would point out, if you look at the way airbnb has navigated the whole process, this is a massive way to go through a traditional ipo and still drum up the kind of support you have from the investor base to bid up a stock to this level. this speaks about the sentiment going around the ipo market as well, kelly. >> before we move along, let's talk about who will benefit. who got shares of $67. is it clients and mutual funds is joe public getting access at $68? look what happened yesterday with doordash. this was so fascinating. in the late '90s, correct me if

i'm wrong, when these companies were going public, it was the first day of trading where we saw all the crazy gains happen what we're talking about today is all of the gains happened before this thing went public. doordash yesterday barely buzzed it wasn't like it opened and shot up another 50% or 100%. there was nobody in the broader public involved in anything interesting yesterday. it all took place before that thing hit the tape. >> i was talking to sources this morning who were involved in crafting the book, what i mean is figuring out who gets allocation at the $68 price. there were 500 investors, maybe bank long only or mutual funds you mentioned. some sized up, took bigger positions at that ipo price. there were also some sovereign wealth funds in the book and niche technology focused hedge funds that tend to dabble in these ipos we kind of talked about the dynamic. i think this is what we were

seeing with yesterday's ipos and airbnb, this comes at the end of the year if you're long-only ipo and this is something facing really good demand, you want into this book because of these pops. this is the kind of move that can help deliver alpha going into the end of the year because you only have a couple more weeks of trading and so if you want to lock in those performance metrics for incentive fee purposes, now is the time to do it. it only gives a couple weeks for these companies to really come down to earth. >> i think that's absolutely the point. before we move on, if you're in these shares and you own them and you're one of these big clients, what others have been saying if you want the highest possible price and raise the most possible money, then do the google true auction thing they did. this hybrid auction was not

that his charge is doordash and airbnb is what they wanted. >> at this price, i have a spreadsheet here, they call it leaving money on the table it's essentially opportunity cost there's no way to price them perfectly if you're raising money. for discussion purposes they would be leaving $4.5 billion on the table if they priced in $155.28. hindsight is 20/20 i was asking advisers this very question, did can you expect it to go this way did you expect to see it pop this much on the first day of trading? why didn't you pop it up, and they said the operators, the management team, the board, they wanted to price this thing where they believe the true value is, especially as they look at their business moving forward. they didn't want to be greedy and price it higher. this one -- one could interpret that to be this is where the

board, the management team believes the true value should be and the rest of it is exuberance >> yeah. the critics would say they want their favorite investors to have the pop we'll see at the open today. we'll talk more about that this hour as this gets closer for trade. 155.75 is the indicative price this thing is moving around a lot. it's fun to watch. thank you for now. one of my next guests says these recent ipos are overpriced and luring in younger, less savvy investors. joini ining me now is dave gent and margie patel dan, what are your thinking about doordash yesterday, airbnb and what's really going on here? >> i think you have a very narrow market that's moved, primarily a big tailwind for large cap growth and especially for the tech and you have a new generation of investors out

there. it's people that are making money, they have cash, they have 401(k) plans, they're putting money in it's a younger generation that's very familiar with these companies. they're using their products to some degree it's an old-school investing, if you will, which is buy companies you know, buy companies you like and that you enjoy and know their product. they're following that old trend, if you will, but this next generation, for the most part, doesn't have the capability or the analytical knowledge to analyze these from a financial standpoint so they're making decisions based on products and popularity of products, which is good, but then they don't have really any sense of valuation so the valuations are becoming somewhat astronomical. where you'll see a pop in the bubble, if there is a pop in the bubble because momentum continues for a while, will be professional investors like myself and others that will look at this and say, we really can't

justify these stratospheric valuations we'll take money off the table and pull it back to 2% or 3% position size. we don't want a 6%, 7%, 8% position in these companies at valuations that they would have to grow at 40%, 50% a year on a peg ratio just to sustain. >> right and we're showing the performance of the renaissance ipo. we just showed c3ai that is up another 30% today. you think this is not so much exuberance or investors being suckered, but high risk appetite in the market and scarcity of ipos overall, is that right? >> yes there haven't been that many ipos and certainly when you have an ipo that has a catchy part of the tech market, people remember all the tech issues that came over the last decade, how much money they made and people want to jump in i don't think they look at this

as traditionally as price earnings ratio, revenue growth, they look at it as a scarcity value and so they don't put a price on it that a so-called rationale investor might be. it's just that type of way with these deals. >> that said, if you combine ipo funds raised with spac funds raised, i think we're at about $130 billion the most since the last '90s that's a huge sum of money it doesn't suggest there's a dearth of opportunities. >> there's a lot of money to be invested in good ideas but we've seen this year that companies are washing cash, using that cash to make acquisitions of other companies, taking advantage of volatility in the stock market i would say that really it is definitely a seller's market and there is a scarcity of companies to buy the number of public companies has actually been shrinking,

showing you there's a huge appetite to buy things or bring public new companies and not that many suitable opportunities. when you have these kind of deals, you have explosion in prices because there's also this hidden demand that didn't know they wanted to boy this until it came to the marketplace. >> certainly they're looking to take gains in parts of the market that have been such strong performers and maybe find somewhere else to park it. we have to leave it there for now. thank you for your thoughts on today's market environment the dow down about 30 points. coming up, a big day for future of pfizer's covid-19 vaccine with an fda panel meeting on whether to recommend approval, as the uk and canada have already given it. we have all the details next it's the urban exodus and urban legend bank of america says all the talk about people fleeing the big cities is exaggerated. they'll tell us how to play it. we're still waiting for

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welcome back we're coming off the deadliest day yet in this pandemic with

more than 3,000 covid-related deaths yesterday this map you're looking at illustrating the spread across the country with cases in california, massachusetts and south carolina, all at more than 75% or more in the past seven days in as an fda panel is meeting right now on whether or not to recommend approval of pfizer's covid vaccine for emergency use. thee let's bring in meg tirrell. >> we're halfway through the eight-hour meeting of outside advisers to the fda. these are experts made up of the public health world, the scientific world and they're talking about every aspect of the data around this vaccine they will vote this afternoon some time between 3:00 p.m. and 5:00 p.m. and they are hashing out a lot of the details about this vaccine, both known and unknown. this morning the cdc gave a presentation about what information we still need to be looking for as the vaccine starts to roll out so once it gets into more and more people, need to do things

like confirming the efficacy is there protecting against the symptomatic disease. that's the immediate question, within the first two to four months over the short term they'll look at the effectiveness holds up against severe, nonsevere disease, answering questions about whether the vaccine prevents infection completely, what is the efficacy across key subgroups or what happens if someone takes one dose of one vaccine and one dose of another vaccine? how long does it last? is one product better than another product and what happens if the virus mutates these are the questions they'll be talking about as this vaccine rolls out. as for today it's the 95% efficacy, the safety we know about, talking about all of those things before the vote this afternoon once they vote it's just a recommendation to the fda. the fda will then make the decision if they issue that emergency use authorization which could happen at any point, within 24 hours, operation warp speed says

distribution stargts of this vaccine. simultaneously an advisory committee to the cdc will meet on friday and sunday to officially recommend this vaccine if it gets the green light from the fda and we could be looking at the first americans getting vaccinated next week. >> it could be as quick as this afternoon that the whole fda goes ahead with that emergency use authorization and things start getting distributed tomorrow >> well, that would be pretty quick. it could conceivably be this afternoon. experts i'm talking with are guessing tomorrow so the fda can take into consideration what the committee says today. >> got it. >> meg, thank you so much. we're getting close. our meg tirrell. coming up with the airbnb ipo taking the spotlight, we will hear from the ceo from booking.com, what he says is its biggest advantage over airbnb. the stock indicated to open at

$150 right now after pricing at $68. bank of america says there are potential headwinds ahead are to the red hot home builders why and who's in worst position going forward. back ia upn cole

welcome back to the exchange bank of america's latest covid housing impact survey shows that suburban exodus may be something

of an urban legend john, where we are, it's been blowing up with demand i take your point. our robert frank has about new leases in manhattan having the strongest november in 12 years tell us what you think is going on here. >> thank you for having me we ran a survey for about six months first three months of the survey there was very little differential between urban dwellers and suburban dwellers in terms of their responses. most really didn't cite a desire to move because of covid it was around 18%. more recently that's changed dramatically where suburban dwellers moved up to 34% saying covid had an impact while the urban counterparts only had 20%. very little move the entire we move up has been from suburban folks. what i think has been happening, the largest or most overwhelming response was people looking for a slower pace living

i think, look, there's a lot of great things about living in the city as the vaccine starts coming into more a reality here you could see less folks wanting to move out into the city. >> robert, when he spoke with brokers, there's a couple -- millenials living with their parents, quote, can't take it anymore and want to move back to the city and suburbanites, if you're selling, maybe you go into the city and renting for a little while how does it affect the home builders' trade, which has been a huge performer but more controversial saying how much legs it has, so to speak >> i think that's exactly right. the fundamentals are still incredibly strong for the home building industry. we have certain concerns about the stocks themselves given the

fact that home price appreciation is moving up pretty markedly interest rates could continue to creep up from here and, frankly, the stocks have had tremendous run the way we think you have to play the home builders at this point is you need to be focused on builders that can go into an existing market and compete with the existing stock of homes that are in that market existing home supplies are very low. it's about 2 1/2 months across the country. you need a company like d.r. horton, our top pick, that can compete from a price standpoint and availability standpoint with the existing stock in each market i think that's where the most need-based buyers are. if things get -- affordability starts running off, i think the need base is important >> if d.r. horton is best positioned to take advantage of these trends playing out, who does that make you think twice about? does anybody have a sell rating

on here? >> toll brothers is our sell rating in the group right now. very well run, very well positioned we think the luxury buyer, it's a little less -- we're a little more discretionary, i should say. if things get tough from an affordability standpoint, that buyer might say -- or someone that just got married or have children and need more space, i think that that buyer will buy less home but probably continue to buy a home. >> there's toll down 4.5% over the past week. thanks for joining us today and appreciate your thoughts, especially as out of consensus as they are right now. >> thank you still ahead, the restoration hardware ceo has some tough words for his retail competitors. we have those details in just a moment. and we are awaiting airbnb's first trade. it has not opened yet. the latest indication is $148, just about a penny below that number again, priced at $68 last night.

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welcome back the dow had fallen by as much as 192 points, down 41 right now. the nasdaq was down 1% it's positive by 0.5%. let's check the sectors. energy, what a strong performer that's been lately it's once again in the leadership today oil messing around that $50 a barrel mark. there's energy up 2.5% on the flipside, industrials and materials are the biggest laggards so difficult to draw broader conclusions. strategists say they're poised to keep climbing after their monster run. you can read more at cnbc.com/pro. let's look at shares of airbnb, still awaiting their open there's only 2 1/2 hours left on wall street. we have to close at 4:00 p.m

airbnb is down to 145 right now. jared initiated coverage of airbnb with outperform last week his price target was $135. "wall street journal" marin farrell joins us, covering doordash, airbnb what are your conclusions about this enormous first-day move first day is not the right word. it's the difference between what the insiders are getting and what the public is getting with doordash and airbnb. >> this pop is inconceivable we just watched this company run up and up and up

a month or two ago, the idea they were going to go at $30 billion was seen as somewhat of a victory. back in march, brian was out raising money at double digit interest rates to sort of save the company. the fact that he's back to before the pandemic, i mean, the fact it's going to be near $100 billion today is sort of -- something is going on. there's clearly excitement around this company, but there's also -- you've been talking about it today just crazy euphoria around the ipo market in general. >> i want to bring you in on that note. again, what about $145 latest indication price for airbnb. let's call that a $90 billion market cap when you initiated outperform last week with $135, that was a year-end 2021 target why are we pulling that forward today? what does that valuation tell you? if you put an outperform on it

before, what do you do with it now? >> hi, kelly, thanks for having me on. ultimately, this is an attractive buy in the near term, you have good leisure travel recovery and airbnb is one of the rare large cap names to play that theme without having to deal with the business travel risk that you have at marriott and hilton and some of the other large hotel. in the longer term you have a really good secular story where airbnb is going to be a market share taker over the longer term and i think covid-19 has probably accelerated that opportunity where work from home, frankly, becomes work from any home so, ultimately the way we look at this is this is a multiyear story. you know, obviously the fact it hasn't even opened yet we don't know how it's going to trade here - >> but that's my point

everything you're saying was true last night. nothing has changed between last night and today. it's not like the vaccine news broke between last night and today. it's not like congress passed the stimulus package between last night and today it's not like -- nothing has changed between last night and today and it's gone from a $47 billion company to $90 billion company. what does that have to do with any of this commentary >> we titled our initiation dream big because ultimately i don't think anybody understands how big this company could become this is a company that has 2% of their t.a.m., 2% market share of the t.a.m. we don't know how big the margins could be, we don't know adjacent spaces opportunity, whether that's experience or getting into the ota the brand is powerful to where they can leverage that and probably find other additional revenue sources from that. i think that's what -- the market is also looking at is we don't know how big this could become over the longer term. >> both airbnb and doordash use

the hybrid auction process if it's meant to get them top dollar, it certainly didn't do that what do you think the real purpose of that was? >> it's fascinating you say that it was really -- the idea was to mitigate a pop these are huge companies so the fact that they're popping, it's a lot of money to essentially double the price what i was hearing about these hybrid auction processes is you could see the demand above the price range that they could put out there. it was a little easier to see the granular of what people would put in orders. clearly, it hasn't helped them it's pretty big for any company to double, especially one at this size. there's a question of how well -- how good of a job are they doing versus the regular process, if this is the outcome we're seeing and all the money left on the table, what you're saying the discrepancy between what retail investors will probably pay today and what the

people who got it last night, but also, yeah, there's also one other question you can only raise it so much over the course of this -- of a week and a half road show. so the underwriters basically only had one chance to raise the price and then you can only really price 20% on top of that. in the case of airbnb, they left a couple of dollars on the table above this first price range still, it was obviously wildly off. the question is -- go ahead, kelly. >> finish the thought. >> you have to ask the question, what is real is this a true valuation is this something going on in the market over the next day or two? i think there is at least something that i think both companies have expressed to their underwriters and other is they were a little wary of pricing up to where demand is because they want -- especially airbnb

the next couple of months could can be pretty bumpy for them i think there's a ton of optimism about where they're going to go in the travel industry once everything rebounds, but depending on what the lockdowns are like in the next few months, revenue could can still really dip >> before we move on, we'll take a quick break and come back, so don't go too far, but what would be the price point at which you say, okay, this has just gone from, you know, big pie in the sky, big opportunity excitement to, you know, way -- way too rich a valuation >> i think when you look around at the tech space and look at some of these names, there's precedent for these names trading at bigger multiples. obviously there's differences with snowflake and snap and some of these companies we're seeing high multiples in the tech space if investors want to be really bullish. i think when a name like airbnb, you can probably justify probably a valuation you want,

because i would just say, if we don't know how big this company can be over the next five years, ten years -- >> right it's open. stand about i. the nasdaq official price $146, priced at 68 bucks last night. let's get quick reaction here. michael, what are your thoughts? >> obviously, you know, there were not enough inputs among the casual retail investors that knows the name, it's ubiquitous, an app with the market $100 billion for a company that did less than $5 billion in refuse new its peak year, 2019 nobody cares about that. one sign of how much this was people at home getting excited for the stock of the day is this morning there was massive options volume and abb, a big european construction engineering company. people thought it was an airbnb. it's not

it's been listed for a long time that tells you who's setting the marginal price at the open here. >> is this one of the latest openings ever we've seen for a company of this size for an ipo like this? >> as far as i can recall. i don't recall anything getting this close to 2:00 p.m. for an opening. i think it speaks to what mike was saying they had to find a buyer for every seller from what i was hearing, there was a tremendous amount of buying interest. you can see that on all the different retail websites which is this is one of the top traded companies today. we saw something similar with doordash yesterday there's tremendous retail interest in these names. they're a bigger part of the market lately which makes it a big. er part of the ipo which makes it really, really difficult to price these things we've seen time and time again the marginal buyer is the retail investor and it's difficult for people pricing these dalz to really understand what the retail investor is trying to pay, is wanting to pay

not to mention, you know, airbnb, there's been talk about this company going public going back like six years we started to hear chatter, is airbnb going to go public, this year, next year, whenever it is people have been waiting a long time to be able to trade this company. >> we were speaking with jared, and his price target, overweight last night, but $135 year-end 2021 price target on it. again, air about nb is trading at $152 right now. >> i keep thinking, you know, $100 billion plus market cap for a company that doesn't have any assets i know we ran through this earlier. it's valued much, much higher than the big hotel chains. there was a key part i keep going back to which is 90% of airbnb's traffic comes organically. that puts it at a level beyond the expedia booking holdings that we see that rely and pay so much money to google to get

their bookings it's kind of amazing to me to hear glenn fogle on "squawk on the street" say his own daughter books airbnb this is an indication of the brand strength as mike alluded to, the excitement from investors around this name. to leslie's point, too, yes, at least six years this company has been talked about going public it's amazing to me how the timing has worked out. we thought that it was $18 billion company just a few months ago >> michael, now that it's gone public and with this kind of pop following on doordash, what's the narrative going to be around these listings and from everything from fairness to price to prices? >> it's a seller's market, no doubt. even the sellers feel like they maybe can't even be aggressive enough to accommodate this demand it's probably going to illicit a lot more deals people maybe going to try to get a little more aggressive on the

pricing side of things i don't really buy into the left money on the table thing it really presupposes this idea that last night you could have told us what the opening price was going to be today. you want to talk about a direct listing. slack was a direct listing it never traded at that first price until it got acquired years later. it's not as if there's any one magic way to price these things when you have such fevered demand out there among a cohort of investors that you can't actually get in a room, get on a conference call and decide what they're truly willing to not just pay, but buy and hold the store as opposed to flipping we don't know. we have great respect for the wisdom of the market and it can see through the short-term and seize on a big opportunity, but we thought that's what they did with uber and uber spent a year and a half trading below where it closed on first day. >> timely, as airbnb trades around $160 as we watch the opening trades play out.

from now on, these ipos happened in a pandemic. they had to do virtual presentations to their investor base to the event they are viewed as successes and they will be, that is going to reshape how these companies continue to pitch themselves. >> i saw that note from axios, the fact you can do these virtually, you can speak with more investors and have more of a dialogue leading up to your ipo. and mike brings up uber. i have to wonder if the leaders of the companies in 2019 that had muted performance on their first day of trading and looking at what's going on this year, a year by all other measures you think would be so challenged for a company to go public, and then you see moves like this and you see upsizing deals based on raising the price ranges, you know, i bet they're sitting and scratching their head thinking,

hmm. >> key difference -- >> i'll give you -- go ahead, deirdre. >> sorry, kelly. i was just saying key difference, uber and lyft were losing billions and billions and now uber trading near $95 billion. big distinction between doordash and airbnb, we have seen some level of profitability. >> that's true >> they've had several profitable quarters. maureen, we'll give you the last word here. does this become a 2020 phenomenon as leslie mentioned, fund managers looking to generate alpha up until year end. if we flip the calendar to 2021, is it a totally different landscape or is this going to go on for some time >> there's such euphoria i think to the point of the pricing today, i spoke with a big ipo buyer earlier in the week who was looking at airbnb about to be priced at $40 billion. he told me, it makes no sense. that doesn't totally make sense on a multiple basis, but how can

i not buy into it? it's going to work everything is working. so, who knows how long that's going to go on for but it just seems to be a psychology here that it's feeding on itself and sort of detached from fundamentals we'll see how long - >> luke warm -- if he's luke warm back then, he's loving it now. >> airbnb trade itting around $158 right now finally, finally open for trading. thank you all so much. deirdre bosa, leslie picker, mike santoli and maureen farrell from "the wall street journal." we'll talk about ceos and one firm seeing the sun setting on home rentals. we'll have more on this all in just a moment.

♪ ♪ ♪ ♪

welcome back let's catch you up on a couple of different stories on your radar today. it is rapid fire here to break down the headlines are robert frank, seema modi and mike santoli we want to start with this booking boom coming off the airbnb ipo moments ago seema spoke with the ceo of one of their biggest rivals today, bookings ceo glenn fogle >> i do believe that happening with this pandemic move forward, people now believe the home is the place to stay sometimes. they're going to look through next year, the year after and say, not sure home or hotel and then they'll make a decision the great thing about booking.com is we have the greatest, greatest list of both homes and hotels so, we're very well positioned for this >> of course, sounding a positive note there, seema, but why are some analysts calling

for a deep freeze on the home rental market? >> it is worth noting home rental demand, yes, it's been stronger than hotels during the pandemic, but since the summer, the rate of bookings has actually declined. if you take a look at earnings from some of the other big travel operators, booking holdings, case in point, big operators, alternative accommodations, accounted for a smaller proportion of total bookings in the third quarter versus the second. and the expectation is that when this vaccines comes out and the timeline continues to improve, consumers will want to have the option to book a home or a hotel. if that's the case, then booking, one would say, is better positioned to benefit from that because they're not just in one area of this market. they are diversified they have that size, that scale and breadth of travel offerings. >> robert, what are your die m

dynamics on that call and the urban versus the suburban. >> the way these ipos have gone these past couple days we started the morning with j jobless claims up 853,000 and on the other end of the k we have three billionaires as a result of this ipo this afternoon that brian chesky and two co-founders each worth more than $10 billion, after the door dash founders each worth about $3 billion. it's not you the djust the disc, it's different worlds and the rest of the country, struggling with joblessness and the pandemic i don't know where this leads in terms of tensions or politics, but i think there's going to be a long-term impact of this incredible euphoria we're seeing in the market with ipos and

what's actually happening in the economy. >> and, mike, a final word on that airbnb prices opened at 146 and trading in the 150s right now. >> it's a side story but the fact that embasxpedia is only u% it's got a lot of this stuff bundled together, different scales, all the rest of it but trades at less than three times revenue. it shows you the market just wants the new, shiny, pure play thing and not necessarily just a general exposure to these trends, however they may play out. >> great point i know plenty of people who use it more than they use airbnb these days we'll move on to talk about the downgrade of best buy today, downgrade to sell at goldman they're calling best buy one of the best run retailers in america, but downgrading it on valuation concerns best buy shares are down nearly 10% over the past month. goldman says they're going to have really tough comps moving

forward as lockdowns lift and the retail playing field evens out. they're down about 2% today. same-store sales up 23% in the third quarter, online sales up this is the pivot we're going to start talking about, as we get back towards normal, what are the stocks you no longer want exposure to? >> look at best buy, it's a great company and the note mentions that great execution, they've got good market share. there are two things about this year that may not be repeatable next year. one is that while they were open during the pandemic, a lot of stores were closed they gained some market share and may not be able to repeat next year. and a lot of their gains were in what they call the multi-year durability of electronics. you're not going to buy a laptop this year and another next year. there was a lot of home school equipment and gaming equipment they won't buy next year those are the two trends along

with the share of wallet issue that's going to change i think could weigh on them. that was the reason for this downgrade. seema, what are your thoughts? some say the pandemic winners are kind of secular winners, they're going to keep winning and others say there's going to be a hangover, even a company like clorox, how much restocking will be doing over the next couple of years. >> i think for best buy it may be best in class when it comes to electronics, but it worth wondering whether going into next year if we get back on the road, we're not spend being ingc time at home, do we need to continue to invest in electron u electronice electronic electronicelectroni

electronics? how much more do you need if we're spending less time at home every year >> if you get a chrome book, you're going to have to replace it every year is my experience >> i've been there spendingon goo on goods is way m 2019 you don't need stuff you bought last year this year but you are going to go to the local restaurant i hope >> i'm with you. >> and harsh words for fellow retailers. gary friedman blasted department stores in a shareholder letter last night he said many retailers have allocated the vast majority of their capital to unnaturally grow their business, resulting in shifting, not lifting sales online at greater cost, while the physical stores have been let to rot he went ton to say most retail stores are archaic, windowless boxes that lack any hume 'ianit.

he said they couldn't meet the supply of demand he's right about the experience at a lot of or stores. >> i think furniture is different. restoration hardware is different. when you're buying a $4,000 sheskin chaise lounge, you want to sit in it and see it whereas if i'm buying another pair of li lieu l lululemon pants i already own, i don't need to go to the store. >> you start to paint a picture in your head which furniture do i need to buy and it's a very different experience going into a macy's and seeing endless beds and saying, all right, honey, which one do you want? it's just a different experience >> last word, michael. >> he only has fewer than a hundred stores these the exception that proves the rule he's totally right he says that there is taste without scale and scale without

taste and he thinks department stores are scale without taste. >> he did not mince word on that regard you have several hundred maybe over a thousand stores you're probably singing a different tune if you sell 4,000 chaise lounges, it's a different story. >> thank you all closing out "rapid fire" and "the exchange" today they're trading at 148 right now and ahead on power lunch, we'll speak to an veorinsts who said he haven't seen anything like this surge since the dotcom boom things are a little different this school year

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- i did this for my children. i am very proud of myself. - [narrator] finish your degree at snhu.edu. hi, everybody. welcome to "power lunch. we start with the story of the week airbnb is surging, making its debut at $146 a share after pricing at 68 last night it's more than a double on day one and follows the debut of door dash yesterday. >> hi, kelly