HomeAway IPO

by Jim Armstrong

There has been a lot written, most negative, about the valuation of the HomeAway IPO this week. Here are a few comments from a shareholder, who admits he has some bias, but I believe his comments are credible….

“So I’m totally biased (I’m a shareholder but not an insider) but IMO HomeAway deserves to be lumped in much more with LinkedIn & Facebook & Ebay for that matter than a Pandora or a Groupon because of network effects. Huge market (at least 10X of OpenTable), low penetration, increasing economies of scale, killer management team. Having seen the pitch, I’m not at all surprised at the market’s reaction.”

“What’s funny is there were a number of negative articles yesterday by TheStreet, SeekingAlpha, and Business Insider saying they didn’t like the business or the valuation and IMO their analysis was terrible.”