San Francisco, CA

San Francisco Stocks in 2021: Salesforce, Airbnb, and Uber

Geoffrey Greer

Go long and strong

https://img.particlenews.com/image.php?url=26AoRc_0Z3BGlGg00

Photo by Anna Nekrashevich from Pexels

Are you looking to invest in San Francisco stocks? Are you worried about a possible economic downturn coming to San Francisco? You should be, but don’t despair. There are plenty of great opportunities to make money in the local economy.

That is why I have put together this guide for you. It is designed as an introduction to the SF market,

Let’s take a look at three companies that are headquartered in San Francisco - Salesforce, Airbnb, and Uber - to get a sense of how San Francisco stocks are doing in 2021.

Salesforce

Here is Salesforce's stock price in 2021:

https://img.particlenews.com/image.php?url=3WdeYG_0Z3BGlGg00

Screenshot by author

As the image shows, Salesforce is slightly down in 2021 after an incredible year in 2020. Here is some of what Salesforce has been doing recently:

  • Salesforce bought Slack in its largest-ever acquisition. As a Slack user, I have not noticed any changes. But just wait until Salesforce starts integrating Slack into its ecosystem. There are rumors that Microsoft, a Salesforce competitor, will be buying Discord, another chat app like Slack, in order to keep pace with Salesforce. That shows you how big Salesforce's acquisition of Slack was.
  • Salesforce has an extraordinarily high valuation. As you can see from the image above its P/E ratio is 47. That is an extraordinarily rich premium even for a great company like Salesforce.
  • Salesforce played a key role in the Covid vaccine rollout in the United States. This suggests that its entry into the government sector is going well. Penetrating government IT is very difficult but once a company succeeds it often leads to lucrative yearlong deals that smooth out earnings.

Airbnb

Airbnb is up this year:

https://img.particlenews.com/image.php?url=1SIeMe_0Z3BGlGg00

Screenshot by author

Airbnb went public last year and continues to grow at an extraordinary pace. Its market cap is now over $100B.

Here is what has been happening at Airbnb recently:

  • Airbnb continues to eat into the lodging industry's revenues. Airbnb is now larger, as measured by market cap, than all of its competitors. Marriott is one of the companies that has suffered the most as Airbnb has continued to grow.
  • Airbnb should have been dead to rights during Covid. At the very start of Covid, Airbnb raised money at an $18 billion valuation under terms that were extremely good for investors. This was a moment of crisis for Airbnb and it chose to raise as much money as possible as quickly as possible. But Airbnb has come roaring back after this debacle, a testament to its management.
  • Airbnb does not have a P/E ratio for the simple reason that it has no earnings. Once Covid ends later this year, Airbnb will have to explain to investors how it plans to turn a profit.

Uber

Uber continues to do well in 2021 as this chart shows:

https://img.particlenews.com/image.php?url=0spqYZ_0Z3BGlGg00

Screenshot by author

After falling to a low of 21.67 in 2020, Uber has more than doubled its stock price. This demonstrates the incredible resilience of this stock.

Here is what has been happening at Uber recently:

  • Uber succeeded during Covid largely because of the success of Uber Eats which boomed as people stopped going to restaurants and supermarkets and instead ordered out. Uber's ability to pivot was extraordinary and proved to be a lifeline for people who were sheltering in place.
  • As we enter into the Party Economy, Uber has huge upside potential. When people return to work after getting vaccinated they will start to use Uber again so Uber's revenues should skyrocket.
  • Uber continues to lose money and it has come under pressure from gig worker advocates. In England, it has been forced to classify its drivers as workers.

Summary

With a market cap that totals over $400B, Salesforce, Airbnb, and Uber are market behemoths. They are all based in San Francisco and their ability to thrive during the Covid crisis bodes well for the future.

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