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<ul class="summary-list"><li>MicroStrategy will keep buying bitcoin with either cash flows, debt or equity, said CEO <keyword id="11939144" type="UNKNOWN" weightage="60" keywordseo="michael-saylor" source="Orion">Michael Saylor</keyword> in a CNBC interview. </li><li>Saylor said the 'killer use-case' for bitcoin is a storer of value in the face of rising inflation. </li></ul><a href="https://markets.businessinsider.com/stocks/mstr-stock">MicroStrategy</a> will continue stockpiling bitcoin for years to come, and while the cryptocurrency's price is volatile, "it's going up forever," CEO Michael Saylor <a href="https://www.cnbc.com/video/2021/11/01/one-asset-passes-microstrategy-test-bitcoin.html">told CNBC on Monday</a>. The bitcoin bull outlined his bullish outlook on the digital asset after <a href="https://www.microstrategy.com/content/dam/website-assets/collateral/financial-documents/events-presentations/Q3-2021_microstrategy-earnings-presentation.pdf">a MicroStrategy regulatory filing</a> last week showed the company <a href="https://markets.businessinsider.com/news/currencies/michael-saylor-microstrategy-mstr-114042-bitcoin-holdings-plans-add-more-2021-10">bought 9,000 bitcoin</a> in the quarter ended Sept. 30. The data analytics company's bitcoin count stood at 114,042, and the stash was worth nearly $7 billion on Monday as bitcoin traded around $61,220. Bitcoin in October notched a fresh record high above $67,000, coinciding with the launch of the first bitcoin-futures exchange-traded fund, the ProShares Bitcoin Strategy ETF. MicroStrategy "will continue to acquire [bitcoin] quarter by quarter, time to time, either with cash flows or with debt or with equity, just depending upon market circumstances and what looks most accretive to our shareholders," he said. As for bitcoin's price, "our view is it'll be volatile because it's plugged into the entire crypto market and it's new, but it's going up forever," said Saylor."I've got a long-term view. I think for the decade, bitcoin is going to be the strongest, hardest, most technically forward storer of value in the economy," he added, calling that the "killer use-case" as inflation rates for consumer and industrial goods soar Another factor favoring bitcoin is that the regulatory landscape in the US has provided significant "clarity" over the last three months, he said. "You can see support in Congress and the Senate, and you can see a very progressive administration. And most of the fears around the China crackdown are past us now. And with the bitcoin mining industry relocating to the US, I think it's a very bullish outlook for the next 12 months," he said. "I don't think things could have gone better in the past quarter."

Bitcoin bull Michael Saylor says MicroStrategy will continue to use cash, debt, or equity to keep adding to its trove of bitcoin

By the term ‘Mutual Funds’, we mean the money pooled out through the contribution of many investors who intend to save and make money through their investments. The corpus thus created with the investment of these individuals is then invested in different categories namely debt funds, liquid assets and others. The individuals investing in mutual funds have to share the profits and losses equally in proportion to the value of their contribution to the corpus of the mutual funds. Here are the different kinds of mutual funds in India. <keyword id="6354820" type="DEFINITION" weightage="20" keywordseo="mutual-fund">Mutual fund</keyword> types based on asset class Equity funds Equity funds are those that are invested in stocks or shares of different companies. Since these investments can provide higher results, they are also called as high risk funds. Debt funds Debt funds are those that are invested in debt such as government bonds, fixed income assets and company debentures. These are considered as safe investment options since they provide fixed retruns to the investors. Money market funds Money market funds are those that are invested in liquid instruments. Some examples to this type are CPs and T-bills. These are also deemed as safe investment options since you will get an immediate return on your investment though the returns might be moderate. Balanced or hybrid funds Hybrid funds also called as balanced funds are invested in different kinds of asset classes. When the proportion of debts are found lower than the equity or when the equity is found lower than the proportion of debts, this kinds of funds enable striking a balance between risks and returns. Sector funds Sector funds are those kinds of investments in which the investor chooses to invest in a particular sector or the division of the market. For example, infrastructure fund investors invest in sectors confined to the infrastructure. They might also choose the investment instruments offered by the infrastructure companies. Returns on sector funds investments are directly related to how the given sector performs. The risk factor with regard to these investments vary between sectors. Index funds Index funds are investment tools that represent a specific index on the stock exchange for the purpose of monitoring the returns and how the index moves. In other words, it is like purchasing shares from the BSE Sensex. Tax-saving funds Tax-saving funds are those that are invested predominantly in equity shares. Tax-saving funds enable an investor to claim the tax deductions under the income tax act. The risk factors that are involved in such kinds of investments are very high. Also, in case these funds perform well, higher returns are possible. The tax saving aspect is one of the major attractions connected with these kinds of investments. Those that are willing to take high risks for the sake of inviting higher returns prefer this model. Funds of funds Funds of funds are those that are invested in other mutual funds. The returns on such investments depend on how the target funds perform on the whole.

Different types of Mutual Funds that you can buy in India

<ul class="summary-list"><li>Major banks like Goldman Sachs walloped Wall Street expectations thanks to dealmaking fees.</li><li>Investment banking has made a comeback, and bigger bonuses are in the cards, too.</li></ul>Christmas came early for investment bankers.The biggest banks on Wall Street reported a huge boost in dealmaking fees this quarter after a two-year slump. Investment bank revenue surged 30% on average at <a target="_blank" href="https://www.businessinsider.com/goldman-sachs-3q-results-dealmaking-trading-resurgence-david-solomon-2024-10">Goldman Sachs</a>, JPMorgan, Bank of America, Citigroup, and Morgan Stanley, according to Wells Fargo analyst Mike Mayo."We continue to believe we are in the early stages of a multiyear capital markets recovery," Morgan Stanley CFO Sharon Yeshaya said during an earnings call. Morgan Stanley's investment bank revenue surged 56% year over year to $1.46 billion, beating Wall Street expectations.Several tailwinds are at play, including tempering inflation and pent-up demand. Debt underwriting has surged as companies rushed to take advantage of <a target="_blank" href="https://www.businessinsider.com/fed-cuts-interest-rates-how-much-september-fomc-powell-inflation-2024-9">interest rate cuts</a>, S&amp;P Global's Nathan Stovall told BI. After years of recession fears, there is more optimism the Federal Reserve can deliver a <a target="_blank" href="https://www.businessinsider.com/inflation-recession-outlook-prediction-labor-market-job-additions-interest-rates-2024-10">soft landing</a>, he said."You're seeing corporates get more comfortable with the world they're operating in, and they're willing to take more risks, and this leads to more M&amp;A activity, more equity raising, things like that," said Stovall, director of financial institutions research.An incoming flurry of dealmaking could reflect a broader economic recovery, as lower borrowing costs make it easier for companies to fund acquisitions. This past quarter saw several <a target="_blank" href="https://www.businessinsider.com/megamergers-deals-m-a-wall-street-comeback-2024-9">megamergers</a>, such as candy giant Mars buying the maker of Pringles for <a target="_blank" href="https://www.businessinsider.com/mars-buying-pringles-cheez-it-maker-kellanova-36-billion-deal-2024-8">nearly $36 billion</a>. Citi advised Mars and provided $29 billion in debt financing with JPMorgan. Paramount <a target="_blank" href="https://www.businessinsider.com/paramount-global-agrees-to-merge-with-skydance-shari-redstone-2024-7">agreed to merge</a> with David Ellison's Skydance Media. Bank of America is one of Skydance's advisors on the $8 billion deal.Wall Street CEOs, however, are cautious about their enormous wins. <a target="_blank" href="https://www.businessinsider.com/jpmorgan-earnings-q3-jamie-dimon-economy-geopolitics-banking-wall-street-2024-10">JPMorgan's Jamie Dimon </a>warned on an earnings call that the favorable interest rate conditions "may not prevail or be the ongoing conditions late next year" and of geopolitical turmoil that is "treacherous and getting worse." Goldman Sachs CEO David Solomon noted that while the bank had a healthy backlog, M&amp;A and equity activity is still well below 10-year averages.Risks to this comeback loom large, Mayo wrote in a research note."There's little question to us that activity and revenues reflect a degree of bull market banking," he wrote. "This could end based on potential results and reactions to the upcoming November elections, a stock market decline, and/or unexpected changes in rates (esp. higher)."Portfolio manager Cole Smead described the results as a "head fake." Smead is watching the US's ballooning deficit, concerned it could <a target="_blank" href="https://www.businessinsider.com/fixed-income-investing-tips-national-debt-yield-curve-steepening-treasury-2024-9">push up bond yields</a> and the cost of borrowing, which would discourage dealmaking."This can go on for maybe a quarter or two more, but it is likely going to fall apart long before it ever gets back to anywhere near the numbers of 2021," said the CEO of Smead Capital Management, which owns shares of Bank of America and JPMorgan. "Ultimately, this equity market, with many risks out there, is complacent and doesn't care. The problem is when the chickens come home to roost, this activity will go back to low levels again."<h2 id="d7f46fb6-2aae-4454-a462-5b0acb5aa3e8">The potential 'X-factor'</h2>While the risks are real, this quarter's upswing isn't necessarily a blip. For the five banks, Mayo estimated that capital markets revenue will grow 8% in 2025 to $31.7 billion and another 7% to $34 billion in 2026.There's also what Mayo calls "the X-factor": the $1 trillion-plus of dry powder held by private equity firms.Jon Gray, president and chief operating officer of private equity giant Blackstone, said that anecdotally, the number of confidentiality agreements more than doubled in September compared with a year ago."Now, that doesn't necessarily mean it's going to turn into that volume of deals. But it clearly shows you there is more enthusiasm," Gray said during the firm's earnings call Thursday. "And we know in the private equity world, there's a lot of companies that need to be sold, similar story in real estate."Finance professor David Stowell told BI that while the upcoming US election and overseas conflict pose economic risks, the sponsors can't sit on the sidelines indefinitely."They know that they always have to risk-adjust their investments," said Stowell, an investment banker for two decades before joining the Kellogg School of Management at Northwestern University. "They pretty much have to spend the money, or their kind of business goes away."Stovall acknowledged that one quarter doesn't make a trend but said that economic data, such as job creation numbers, points to a <a target="_blank" href="https://www.businessinsider.com/us-economy-outlook-data-points-to-soft-landing-no-recession-2024-9">soft landing</a>. This bodes well for dealmaking for the rest of the year and 2025."I'm cautiously optimistic," he said. "It is wise to not jump up and down and say things are going to go straight up from here, but I do think it's more encouraging than it's been for a while."For now, some Wall Streeters can already count on larger bonuses, according to compensation consultant Alan Johnson. With debt and equity capital markets thriving, underwriters will get the biggest gains. For debt and equity underwriters, he estimated bonus increases of 25% to 35% and 20% to 30%, respectively. M&amp;A bankers will have to wait longer for a significant boost and should expect maybe a 5% or 10% uptick this season."Traditionally, the sexiest area would be M&amp;A — the pipeline looks really good, but most of the closing fees would be for 2025," said the founder of Johnson Associates. "The headlines around M&amp;A are really going to be next year's story."

Investment banking has made a multibillion-dollar rebound, but it's too early to pop the Champagne 

<ul class="summary-list"><li>JPMorgan and Wells Fargo kick off bank earnings on Friday.</li><li>Expect lots of questions about how lower rates will impact business going forward.</li></ul>When Wall Street's biggest banks report earnings this week, led by JPMorgan Chase, investors will be listening closely for clues about how a changing interest-rate environment could impact business in 2025.The Federal Reserve in September cut the so-called federal funds rate by 50 basis points — <a target="_blank" href="https://markets.businessinsider.com/news/stocks/fed-interest-rate-cut-ai-stocks-nvidia-broadcom-asml-tech-2024-9?_gl=1*1ax8rwf*_ga*MzQwMzI0MDQ1LjE3MjEzMDM4ODI.*_ga_E21CV80ZCZ*MTcyODQ5MTE5OC4yOTAuMS4xNzI4NDkxMjEwLjQ4LjAuMA..">the central bank's first cut</a> in more than four years. The September 18 move took place too late to impact third-quarter results, but stock research analysts are expected to pepper executives this earnings season about what a lower interest-rate environment might mean for business going forward.Lower rates can be a mixed blessing for banks. On the one hand, the Fed's campaign to increase the cost of borrowing has contributed to an era of sky-high returns for traditional lenders like JPMorgan, which have been making more money on loans than they have been paying for deposits. But that party was never going to last forever. (Indeed, top JPMorgan exec <a target="_blank" href="https://www.ft.com/content/c11b59f6-4827-4c4e-9f24-2f075b85f665">Daniel Pinto warned last month</a> that stock analysts' so-called NII expectations were too high.)Plus, lower rates could help unleash <a target="_blank" href="https://www.businessinsider.com/goldman-sachs-2q-earnings-david-solomon-investment-banking-forecast-2024-7">the dealmaking backlog</a> that investment bankers have been talking about since the pandemic-era M&amp;A boom started to slow in 2022. Their bonuses are counting on it.Speaking of bonuses, third-quarter results will also be closely watched on Wall Street as an indication of how well investment bankers may get paid this year.JPMorgan and Wells Fargo will kick off earnings on Friday, followed by Goldman Sachs, Citi, and Bank of America on Tuesday. Morgan Stanley will report its earnings on Wednesday. Here are the top four things to look for this bank earnings season:<h2 id="629d7158-9393-4502-a5a4-b8a898b107c5">Investment banking</h2>Investment bankers have been predicting dealmaking will return since it started slowing in 2022. But this year, there are strong signs that companies are ready to start going public and merging again.<a target="_blank" href="https://www.businessinsider.com/megamergers-deals-m-a-wall-street-comeback-2024-9">Preliminary data compiled by LSEG</a> shows 425 mergers globally so far this year valued at more than $1 billion. That's up 24% from the same period in 2023. What's more, deals valued at greater than $10 billion were recently up 39% compared with the same period last year.The number of companies going public is also soaring. 106 US companies have gone public through the third quarter, raising a total of $24.7 billion, according to IPO tracker Renaissance Capital. That's up from 71 in 2022 and 108 in 2023 and on track to beat the $27 billion raised in those two years.Third-quarter results — and commentary about 4Q dealmaking so far — will be closely watched for further signs of progress in M&amp;A, equity underwriting, and debt underwriting.<h2 id="bf745d80-abee-4488-881c-e8551a17811c">Trading</h2>At the Barclays Financial Services conference in September, big bank executives warned that trading revenues may be muted compared to 2023.Goldman Sachs CEO David Solomon described a "more challenging macro environment, particularly in the month of August," and warned that the bank's trading business "is trending down close to 10%." Solomon cited the bank's revenues for FICC, or fixed-income, currencies and commodities, saying that results were "very, very strong" in the third quarter of 2023.At the same conference, JPMorgan's president and chief operating officer, Daniel Pinto, predicted that trading revenues would be "flat to slightly up 2%." "It was a bit more challenging environment to monetize client flows, particularly in rates," he said.<h2 id="723af9a4-99cc-49fd-b909-2fc736985cbb">Lending</h2>Stock analysts will be watching what banks say about net interest income, which is how much banks earn off the difference between what they pay on deposits and what they earn on loans. When the Fed started raising rates, banks were making out like bandits because they were able to charge more for loans more quickly than they were raising rates on savings accounts.But banks have been warning that this dichotomy wouldn't last forever, and loan growth has indeed been slowing as the economy slows. Lower rates could boost lending yet again, but that could take time. In the meantime, JPMorgan's Pinto in September warned that Wall Street stock analysts' 2025 predictions for NII of between $91.5 billion and $90 billion were too high, sending the bank's stock down."I think that that number will be lower," Pinto said at the Barclays Financial Services conference. "We are not going to guide on that now, but the $90 billion is a bit too high."<h2 id="b126e3af-7e38-4ed0-b6d7-4e67905737f9">Bonuses</h2>Banks tend not to talk about bonuses on earnings calls, but how bankers will be paid will be reflected in C-Suite comments about dealing and trading generally — as well as their predictions for the rest of 2024 and into next year.In good news, compensation expert Johnson Associates sees bonuses up this year across the board, an analysis that's reflective in part of <a target="_blank" href="https://www.osc.ny.gov/press/releases/2024/10/dinapoli-wall-streets-2024-first-half-profits-232b-were-793-higher-last-year">Wall Street's earnings results</a> so far this year. See here for the compensation expert's views on bonuses for debt underwriting, equity underwriting, sales and trading, and more.<div type="image" title="Wall Street bonus predictions" height="630" width="1950" msid="114096916" hostid="261" sizebytes="88820"></div>

4 trends to watch this bank earnings season

<ul class="summary-list"><li>Private lending is now Blackstone's largest business by assets, up 22% since last year.</li><li>COO Jon Gray said it's "very early days" for the burgeoning business.</li></ul>Blackstone made its name buying <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-employee-ownership-program-hvac-company-copeland-kkr-2024-10">undervalued companies</a> and <a target="_blank" class="" href="https://www.businessinsider.com/commercial-real-estate-market-bottom-crash-blackstone-goldman-sachs-2024-3">real estate.</a> But in the third quarter of this year, the company's burgeoning credit arm was the star of the show.In reporting earnings on Thursday, the New York-based buyout firm said its business of cobbling together and investing in loans is now its largest unit by assets. The so-called credit and insurance division boasts assets under management of $354.7 billion, up 22% over last year. By contrast, Blackstone's private-equity business manages $344.7 billion, and its real-estate investing arm, the firm's largest business at the start of the quarter, has $325.1 billion."Today, we manage the largest third-party private credit business in the world," Blackstone's President and Chief Operating Officer, <a target="_blank" class="" href="https://www.businessinsider.com/jon-gray-blackstone-profile-succession-schwarzman-interview-ceo-bumble-oatly-2021-1?r=gray-teaser">Jonathan Gray</a>, said in a call to discuss the firm's financial results. "We have one of the largest, if not the largest, businesses in direct lending, CLOs, real estate debt, and private investment-grade credit," Gray added.Blackstone's private-credit coronation comes as the alternative investments industry increasingly turns toward a growing <a target="_blank" href="https://www.businessinsider.com/private-credit-lenders-middle-market-deals-2023-11">opportunity in non-bank lending</a>. A combination of high interest rates and a <a target="_blank" class="" href="https://www.businessinsider.com/interest-rates-bank-failures-commercial-real-estate-us-economy-outlook-2024-5">banking crisis</a> that has considerably slowed bank lending has increased demand for <a target="_blank" class="" href="https://www.businessinsider.com/jamie-dimon-private-credit-market-risks-retail-investors-debt-investing-2024-5">non-bank loans</a>. Since these lenders often charge higher interest rates, institutional investors are also clamoring to provide capital for these loans to juice fixed-income returns.Blackstone has been tapping into investor demand for private loans in recent months, including what Gray described as a "dramatic increase in demand for all forms of investment grade private credit."Both Gray and Blackstone founder and CEO Steve Schwarzman, meanwhile, seem to think Blackstone's private-credit boom is just getting started."We are building a third-party performing credit juggernaut, and we expect our business to grow significantly from here," Gray said.<h2 id="8b520868-07a0-4e48-a432-8f3b351a93f6">The largest third-party lender</h2>While Blackstone now claims to be the largest third-party credit provider, Apollo is the <a target="_blank" href="https://www.businessinsider.com/apollo-global-management-investor-day-presentation-one-trillion-private-lending-2024-10">largest non-bank lender</a> with $562 billion in private credit assets under management. Apollo has relied on Athene, an insurance company it owns, to lend, while <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-private-credit-investment-strategy-2022-10">Blackstone has focused on investing others' money</a>, forming strategic partnerships with four insurance companies, including Resolution Life, and financial advisory relationships with another 20.Gray expects the insurance industry to continue writing checks to private credit investors, especially in direct lending, a $25 trillion opportunity that's still in "very early days."Gray said that Blackstone's focus on partnering with investors, instead of competing with them by having its own insurance company, will help the business grow."We're not in the market <a target="_blank" class="" href="https://www.businessinsider.com/marc-rowan-profile-ceo-apollo-global-management-leon-black-2021-8">selling annuities</a>," Gray said. "We are a third-party investment manager, and that definitely helps the conversations and helps our momentum here."Gray said the firm sees more pension funds and sovereign wealth clients moving into the space as well."I think over time it's going to move beyond insurance," he said." We're having good dialogue with pension clients. I think we'll see sovereign wealth funds start to do this as well.".Blackstone's private credit arm has generated 16.7% in returns over the last twelve months, though falling interest rates "put some pressure on absolute returns," Gray said. He expects investors to continue to flock to the strategy so long as it can produce returns at a premium to traditional fixed-income investments.<h2 id="c6df9c62-15a3-4bb8-8fe8-7ddacc78d287">"Broad-based acceleration"</h2>Blackstone on Thursday reported distributable earnings, or cash that pays dividends, of $1.3 billion, up 6% over last year — and beating expectations. Total assets under management climbed 10% from last year to $1.1 trillion. The firm's stock price approached its all-time high of $172 a share in midday trading amid what Steve Schwarzman described as a "broad-based acceleration across our businesses."The firm has been making a record number of investments over the last few months, especially in commercial real estate. Blackstone executives <a target="_blank" href="https://www.businessinsider.com/inside-blackstones-real-estate-buying-spree-as-valuations-plummet-2024-5">called a CRE bottom</a> earlier this year, and the company has deployed more than $24 billion into real estate debt and equity over the last twelve months.It's also been investing <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-steve-schwarzman-on-ai-infrastructure-investment-goals-2024-7">big in AI infrastructure</a>, particularly data centers, which will power the artificial intelligence revolution. In September, the firm announced said it would acquire AirTrunk, the largest data center platform in the Asia-Pacific region, in a $16 billion deal alongside the Canada Pension Plan Investment Board.With $70 billion worth of data centers, and over $100 billion of prospective development, Schwarzman said the firm has become "<a target="_blank" class="" href="https://www.businessinsider.com/blackstones-data-center-bets-have-climbed-10-fold-to-100-billion-2024-4">the largest data center provider in the world</a>" in only three years.Opportunities to cash out of investments to drive returns for investors continue to remain sluggish, however. On Thursday, both Schwarzman and Gray said there are plenty of signs that dealmaking is bouncing back, spurred by expectations for lower rates.Gray said the firm's private-equity nondisclosure agreements were up 2.5 times in September compared with the same time last year, suggesting an increase in discussions about potential deals.Gray also predicted <a target="_blank" class="" href="https://www.businessinsider.com/exclusive-omada-health-confidentially-filed-s1-ipo-public-2024-10">growing demand for IPOs</a>, which could help the firm sell some assets and generate returns for its LPs and fees for shareholders and employees.Gray described a meeting he went to this week where the IPO discussion had gone from "theoretical to the practical." Gray said the discussion is now along the lines of, "What's the right size? Should we do it in February or April?"

Inside Blackstone's growing 'credit juggernaut'

<ul class="summary-list"><li>Anant Yardi took a majority stake in WeWork through its bankruptcy process.</li><li>WeWork struggled post-2019 from pandemic constraints and long lease obligations.</li></ul>WeWork's new owner prefers to stay out of the spotlight — and he's already sketching out new plans for the embattled office company.Anant Yardi, who, alongside his wife, founded the widely-used commercial real estate software Yardi Systems, took a majority stake in WeWork through its bankruptcy process. In total, he invested more than half a billion dollars in debt and equity. Japanese investor SoftBank and hedge fund King Street now own minority stakes.WeWork catapulted to a household name on the heels of founder Adam Neumann's <a target="_blank" href="https://www.businessinsider.com/employees-inside-adam-neumanns-wework-reveal-a-wild-culture-2019-9">eccentric leadership</a> and SoftBank's billions of dollars in investment, and fell from grace in 2019 for largely the same reasons. The company's ensuing turnaround was constrained by the pandemic and long lease obligations inked under Neumann, who failed to buy back the company out of bankruptcy.Yardi, unlike Neumann, likes to build in the background and only recently started <a target="_blank" href="https://www.businessinsider.com/wework-is-putting-neumanns-60-million-jet-up-for-sale-2019-9">flying</a> business class, the <a target="_blank" href="https://www.ft.com/content/06eb3a4d-883d-46bc-bd84-8b3d9af6f55d">Financial Times reported</a> on Thursday.Yardi said he's planning to expand WeWork's marketing to focus on small businesses. That represents a major shift for the company, which has spent the last several years courting enterprise businesses, including under Neumann. Companies, especially in tech, prioritize bigger businesses in hopes that those customers will provide more stability and value than small startups and freelancers — WeWork's original customers.But WeWork's enterprise business never fully realized its ambitions. Even back in 2019, the <a target="_blank" href="https://www.businessinsider.com/wework-missed-target-for-enterprise-customers-by-more-than-25-2020-1">sales team missed targets</a>, Business Insider reported at the time. WeWork pushed for enterprise sales hard in the wake of the pandemic, as companies rethought their office footprints.In March 2021, WeWork had just over 200,000 enterprise customers — 52% of its customer base, excluding countries including China and Israel. By June 2023 — the latest time such data is publicly available — WeWork counted 240,000 enterprise memberships, 41% of the customer base.WeWork will also look to use technology similar to the hotel industry, like real-time booking, and partner with other coworking companies, Yardi told the FT.WeWork's balance sheet, now less constrained by leases, "looks very good," Yardi said."WeWork is such a popular and well-known brand, it didn't seem right to let it go down," Yardi told the FT. "I realize financial decisions are not made on right and wrong. But there's also a tremendous opportunity in terms of turning around WeWork."At WeWork's peak in January 2019, SoftBank valued the company at $47 billion. Last month, WeWork advisers valued the company at about $750 million.WeWork did not immediately respond to a request for comment, sent outside standard business hours.

WeWork spent years going after big businesses. Now, its new owner wants to look at the little guys.

<ul class="summary-list"><li>Blackstone is launching two new funds for wealthy individual investors in credit and infrastructure.</li><li>Blackstone's largest fund for individual investors, BREIT, has come under fire from critics.</li></ul>Blackstone is doubling down on its offerings for individual investors, despite criticisms over its handling of a <a target="_blank" class="" href="https://www.businessinsider.com/real-estate-blackstone-investing-private-reits-2024-1">real-estate fund known as BREIT</a>.In an earnings call on Thursday,<a target="_blank" class="" href="https://www.businessinsider.com/blackstone-ceo-stephen-schwarzman-best-career-lessons-2019-9"> Steve Schwarzman, Blackstone's chairman and CEO</a>, said the private-equity giant known for investing on behalf of pensions and other large investors plans to launch "several new products in the private wealth channel" focused on wealthy individuals.Later in the call, Jon Gray, Blackstone's COO and president, provided more details, saying the firm plans to launch the two new funds early next year. First up, he said, will be "an <a target="_blank" class="" href="https://www.businessinsider.com/biden-laws-us-infrastructure-invest-funding-2024-3">infrastructure vehicle</a> that will provide investors access to the full breadth of the firm's strategies in this area, including equity, secondaries, and credit."The second will be "a vehicle that will invest across our expansive credit platform," according to Gray.Those two new funds will join the three funds (BREIT, BXPE, and BCRED) for wealthy individual investors that Blackstone already offers, starting with its launch of BREIT in 2017. Those three funds, together with <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-private-wealth-joan-solotar-alternatives-breit-bcred-futureproof-2022-9">Blackstone's other offerings for wealthy individuals</a>, now represent $240 billion in assets, according to Gray."Our commitment to the $85 trillion private wealth market is stronger than ever," Gray said.The launches represent a vote of confidence for the firm's private wealth division after more than a year of prorated redemptions raised <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-breit-redemptions-real-estate-investing-strategy-2023-2">criticisms of BREIT</a>.Gray said Blackstone has raised nearly $13 billion for BREIT, BCRED, and BXPE in the first two quarters of the year, more than the firm raised from wealthy individuals in 2023.<h2 id="5c6f2378-97ef-44af-8017-8b724041e5ab">New Funds</h2>The two new funds represent investment areas that have so far paid off for the firm's investors. This quarter, Blackstone surpassed $100 billion in its infrastructure platform, which invests both debt and equity into infrastructure projects like renewable energy,<a target="_blank" class="" href="https://www.businessinsider.com/blackstones-data-center-bets-have-climbed-10-fold-to-100-billion-2024-4"> data centers</a>, and supply chain and transportation companies.Blackstone launched its infrastructure fund for institutional investors in 2017. Since then, Blackstone Infrastructure Partners has generated 16% net returns annually, beating the public infrastructure index by nearly 11%, Gray said."As we've been saying for some time, we believe flows in the wealth channel ultimately follow performance," Gray said.Private credit has also been a top performer for the firm, generating a gross return of 4.2% for the quarter. In the first half of 2024, the firm issued $24 billion in A-rated credits, up almost 70% year over year, according to Gray.BCRED, the firm's first credit fund for individual investors, raised $3.4 billion in this quarter, more than the $1.4 billion raised by BXPE and the $990 million raised by BREIT. This fevered fundraising pitch showcases demand for credit products and may explain why the company is planning to launch a second credit product for individual investors.<h2 id="993fc1df-00c9-4bd6-a7a1-b8382b3c08c8">BREIT criticism and response</h2>Blackstone's private wealth business has not been without its challenges. BREIT's woes started at the end of 2022 when the fund began <a target="_blank" class="" href="https://www.businessinsider.com/real-estate-blackstone-investing-private-reits-2024-1">prorating redemptions</a> from investors amid a slowdown in the real estate market before a $4 billion investment from the UC pension fund bolstered its books.By February of this year, it was able to fulfill all <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-starwood-real-estate-breit-sreit-investors-withdrawals-2024-5">redemption requests</a>, but some critics continued to question the <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-breit-commercial-real-estate-fund-misled-investors-private-equity-2024-5">company's valuation methods, including in an article by Business Insider</a>. Blackstone disputed many of the claims in the article, which cited criticisms of short sellers and other researchers.On Thursday, Schwarzman said that BREIT is three times bigger than the next five largest non-traded REITs combined, an indication that investors want a chance to invest in real estate alongside the world's largest landlord.Schwarzman combined his analysis of BREIT's success with a rosier picture of the larger macro environment in real estate. Since <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-jonathan-gray-predicts-commercial-real-estate-bottom-2024-1">calling the bottom of the real estate market</a> at the beginning of the year, Blackstone's confidence that inflation is receding has continued to increase, leading to more deployment of capital into real estate.It's also providing more possibilities to exit and realize returns on its real estate assets. Gray said that the firm is now seeing two to three times more bidders on its logistics and rental housing assets than it did during the worst of the credit crunch. The firm, which is deploying nearly $15 billion into real estate this year, according to Gray, sees sunny days ahead."Real estate is one of the largest asset classes in the world, and having the largest business when the cycle is turning should be very advantageous for our shareholders," Schwarzman said.

Blackstone is doubling down on its efforts to woo the wealthy with 2 new funds, flying in the face of BREIT critics

<ul class="summary-list"><li>This post originally appeared in the Insider Today newsletter.</li></ul>Hi! Be careful getting behind a Gen Zer next time you go through airport security. They might stop to take a pic of their "<a target="_blank" href="https://www.businessinsider.com/gen-z-tiktok-viral-travel-trend-tsa-tray-aesthetic-2024-9">TSA tray aesthetic</a>."In today's big story, this guy is ready to give up <a target="_blank" href="https://www.businessinsider.com/job-seeker-applied-more-than-2000-roles-2024-9">after applying to nearly 2,200 jobs</a>.What's on deck:<ul><li>Markets: You don't have to worry about these stocks <a target="_blank" href="https://www.businessinsider.com/stocks-to-buy-election-investing-strategy-donald-trump-kamala-harris-2024-9">regardless of who wins the White House</a>.</li><li>Tech: The company formerly known as Twitter is leaving San Francisco. <a target="_blank" href="https://www.businessinsider.com/twitters-last-day-san-francisco-taxes-x-austin-elon-musk-2024-9">How did it all go wrong</a>?</li><li>Business: Starbucks' new CEO dropped some clues about <a target="_blank" href="https://www.businessinsider.com/starbucks-new-ceo-wants-customers-spend-more-time-coffee-chain-2024-9">changes on the horizon</a>.</li></ul>But first, please include a cover letter.If this was forwarded to you, <a target="_blank" href="https://www.businessinsider.com/subscription/newsletter/insider-today">sign up here.</a><h3 id="7fa5f018-5b05-4a37-a8dc-d3f89138bcb3">The big story</h3><h2 id="5fd547b9-ec52-41fc-8e08-4f4b27dd8097">Not hiring</h2><div type="image" title="Kevin Cash" height="3648" width="5472" msid="113297453" hostid="261" sizebytes="393528"></div>How tough is the current job market? Imagine striking out roughly 2,200 times.That's the reality for Kevin Cash, who has had a <a target="_blank" href="https://www.businessinsider.com/job-seeker-applied-more-than-2000-roles-2024-9">tough time finding a new gig since getting laid off in late 2022</a>. He spoke to Business Insider's Tim Paradis about his discouraging job-seeking journey.The job market is in a weird spot these days. Unemployment is still relatively low, sitting at around 4.2%. But <a target="_blank" href="https://www.businessinsider.com/unemployment-rate-job-growth-interest-rate-cuts-federal-reserve-recession-2024-9">August's labor data</a> showed US nonfarm payrolls were weaker than expected, adding 142,000 jobs instead of the expected 164,000.So while a ton of people aren't out of work (Good!), companies aren't hiring a lot of new workers either (Bad!). For some, that means getting stuck in a job you might not love. But for people like Kevin, it's become almost impossible to find work.On paper — and maybe in another labor market — Kevin appears to be the perfect candidate. He has a background in a growing field (business intelligence and semiconductor manufacturing), he's well-educated (five degrees, including an MBA), smart (a member of high-IQ society Mensa), and a veteran.But instead it's been rejection after rejection for Kevin. Forget even getting a job offer. A foot in the door is proving maddeningly hard. By Kevin's math (he tracks his applications in a database) he has a 0.55% chance of getting a phone screener and a 0.28% chance of an interview.<div type="image" title="Person looking at a briefcase with American Flag on it" height="1000" width="2000" msid="113297446" hostid="261" sizebytes="90182"></div>Kevin's case might be extreme, but it's not uncommon.White-collar workers, in particular, <a target="_blank" href="https://www.businessinsider.com/white-collar-jobs-remote-office-workers-cant-get-hired-2024-9">are having a hard time finding new jobs</a>. It's a tough reality check for employees who previously held all the power in the job market.The bright side is a shift in tides could be on the horizon. The Fed is expected to start cutting interest rates next week. That, coupled with fears of a recession subsiding, could give businesses some confidence in getting more aggressive with their hiring.But we're not likely to return to the zero-rate boon times of a few years ago. The efficiencies achieved over the past few years from cost cutting aren't going to be given up by companies easily.And even if they do manage to get some breathing room, the type of hiring companies might consider could be very specific. Making the most of AI investments remains a top priority for tech companies, meaning the limited amount of talent with experience in that field is likely to be the big winner.<h3 id="77f31a4c-8462-4e3d-a71f-838cb79493fb">News brief</h3><h2 id="1fcd294b-3f53-425f-9f20-4093e8623b59">Top headlines</h2><ul><li>JPMorgan just capped bankers' work at 80 hours a week — <a target="_blank" rel="noopener" href="https://www.businessinsider.com/jpmorgan-caps-bankers-work-80-hours-bank-of-america-tracking-2024-9">but there's still one big exception</a>.</li><li>The Kremlin is really <a target="_blank" href="https://www.businessinsider.com/kremlin-blasts-trump-harris-debate-putin-comments-russia-ukraine-2024-9">annoyed about the debate</a>.</li><li>Mark Zuckerberg <a target="_blank" href="https://www.businessinsider.com/meta-mark-zuckerberg-acquired-podcast-sold-out-stadium-2024-9">sold out a stadium</a>.</li><li>Taylor Swift used only Instagram to endorse Kamala Harris. <a target="_blank" href="https://www.businessinsider.com/taylor-swift-kamala-harris-instagram-twitter-elon-musk-2024-9">There's a reason for that</a>.</li></ul><h2 id="8120060b-ae66-48dc-b149-f0489a30ffa2">3 things in markets</h2><div type="image" title="Photo collage featuring Kamala Harris and Donald Trump in front of a white upward-trending line and grid" height="900" width="1200" msid="113297457" hostid="261" sizebytes="75470"></div><ol><li>Trump? Harris? For these stocks, it doesn't really matter. As long as economic growth continues, semiconductor businesses and companies that invest in the debt or equity of smaller companies stand to benefit regardless of November's result, according to strategists at Oppenheimer Research. <a target="_blank" href="https://www.businessinsider.com/stocks-to-buy-election-investing-strategy-donald-trump-kamala-harris-2024-9">Check out these seven election-proof stocks</a>. (For what it's worth, the stock market reacted as if <a target="_blank" href="https://markets.businessinsider.com/news/stocks/trump-harris-debate-winner-djt-stock-election-bitcoin-trump-media-2024-9">Harris won Tuesday's debate</a>.)2. The latest inflation data is bad news for people banking on a bigger rate cut. The consumer price index <a target="_blank" href="https://www.businessinsider.com/inflation-august-consumer-price-index-federal-reserve-rate-cuts-2024-9">continued to cool</a>, but an unexpected rise in core inflation means a 50-basis-point cut by the Fed next week is now unlikely. <a target="_blank" href="https://markets.businessinsider.com/news/stocks/inflation-report-stock-market-today-fed-rate-cuts-economy-outlook2024-9">Investors aren't pumped</a>.3. The start of something new for hedge-fund fees? The $11 billion ExodusPoint just made a <a target="_blank" href="https://www.businessinsider.com/exoduspoint-multistrategy-hedge-funds-lower-fees-adopt-cash-hurdle-2024-9">concession on fees that could ripple</a> across the industry. So far, they're the biggest name in the space to adopt a so-called "cash hurdle."</li></ol><h2 id="f4b54806-7f81-450c-ba32-92560d4fae9b">3 things in tech</h2><div type="image" title="The twitter logo flying off of the golden gate bridge and into the distance" height="600" width="1200" msid="113297463" hostid="261" sizebytes="87812"></div><ol><li>Twitter flees San Francisco. More than a decade ago, the city gave the company a massive tax break to stay put when it threatened to move to the suburbs. At the time it worked — but now Elon Musk is over it. <a target="_blank" href="https://www.businessinsider.com/twitters-last-day-san-francisco-taxes-x-austin-elon-musk-2024-9">Here's how it all went south</a>. (Literally, since X is moving to Austin.)2. Hell hath no fury like an influencer scorned. Apple is taking a bigger bite out of the creator economy: its whopping 30% in-app fee has spread to more creator platforms, and it takes a cut of donations and purchases on iOS. Creators are fuming and say the company gives <a target="_blank" href="https://www.businessinsider.com/apple-bigger-bite-creator-economy-influencers-fees-2024-9">little in return for the money it takes</a>.3. Jensen Huang's great expectations. In a conversation with Goldman Sachs chief David Soloman, the Nvidia CEO painted a picture of the big returns on AI infrastructure. Although costs may double, <a target="_blank" href="https://www.businessinsider.com/nvidia-ceo-jensen-huang-details-ai-infrastructure-roi-goldman-sachs-2024-9">companies get things done 20 times faster</a> with generative AI, Huang said. "It's not unusual to see this ROI," he added.</li></ol><h2 id="9260fa45-d397-4b3c-b4f8-4bb193976216">3 things in business</h2><div type="image" title="a locked up house on a pale lavender background." height="900" width="1200" msid="113297460" hostid="261" sizebytes="162108"></div><ol><li>Lower mortgage rates won't unlock the housing market. Mortgage rates are inching lower as the market expects Fed cuts, which will allow more buyers to afford a home. But Zillow's chief economist sees some other potential issues that <a target="_blank" href="https://www.businessinsider.com/lower-mortgage-rates-locked-up-housing-market-crisis-home-zillow-2024-9">could send home prices soaring again</a>.</li><li>There's one debate question both Trump and Harris dodged. Neither candidate gave much detail about <a target="_blank" href="https://www.businessinsider.com/trump-harris-economy-tech-debate-tariffs-taxes-2024-9">how they will fix the economy</a>, leaving many Americans confused about taxes and tariffs. Here's what you need to know about <a target="_blank" href="https://www.businessinsider.com/what-you-need-to-know-about-kamala-harris-opportunity-economy-2024-9">Harris' "opportunity economy"</a> and how it compares to Trump's plan.</li><li>Starbucks' new CEO wants you to stay a while. Brian Niccol hinted the chain may have gotten a little too convenient in an open letter published Tuesday, his second day on the job. "We're committed to elevating the in-store experience," Niccol wrote — giving a clue about <a target="_blank" href="https://www.businessinsider.com/starbucks-new-ceo-wants-customers-spend-more-time-coffee-chain-2024-9">the changes he'll oversee</a> at the chain.</li></ol><h2 id="1ad7b482-3f4b-44b4-81b6-a864aa386478">In other news</h2><ul><li>Elon Musk explains his 80/20 prediction for <a target="_blank" href="https://www.businessinsider.com/elon-musk-all-in-podcast-ai-prediction-2024-9">what AI means for humans</a>.</li><li>I watch the NFL and other live sports for free with this easy, old-school hack. <a target="_blank" href="https://www.businessinsider.com/watch-nfl-live-sports-for-free-tv-antenna-ota-2024-9">You can, too</a>.</li><li>Video game actors fight for AI protections and compensation for their 'digital replicas' <a target="_blank" href="https://www.businessinsider.com/gaming-strikes-actors-developers-ai-protections-2024-9">amid a gaming market slowdown</a>.</li><li>Taylor Swift used her VMA acceptance speech to drop her <a target="_blank" rel="noopener" href="https://www.businessinsider.com/taylor-swift-vma-acceptance-speech-encourage-voters-to-register-kelce-2024-9">2nd political message in 24 hours</a>.</li></ul><h2 id="9f5d80ac-3466-429f-a50a-2ffbb70c65ff">What's happening today</h2><ul><li>Kroger and other companies report earnings.</li><li>London Fashion Week begins..</li></ul>The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Milan Sehmbi, fellow, in London. Amanda Yen, fellow, in New York.

Applying to jobs is tough, try doing it 2,200 times

<ul class="summary-list"><li>The stock market's leaders are overvalued and could suffer a big correction, RBA's Richard Bernstein said.</li><li>Losses could rival the dot-com crash, when popular stocks lost as much as 50% of their valule, he predicted.</li></ul>The most expensive stocks are poised for a steep correction, but that could present a "monster" buying opportunity in nearly every other area of the market, according to Wall Street veteran Richard Bernstein.The RBA chief investment officer pointed to a discrepancy between the debt and equity markets, which could hint at a soon-to-come <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-crash-prediction-dot-com-bubble-correction-economy-recession-2024-5">market correction</a>. In the debt market, credit spreads are narrowing, which is what typically happens when corporate profits are growing. But, only a <a target="_blank" href="https://www.businessinsider.com/magnificent-7-stocks-no-tech-bubble-burst-2024-2">narrow group of stocks</a> are dominating the equity market, which implies profits aren't expanding for most companies.There are a number of things that could explain that disconnect. The bond market could be flashing a false signal, which would imply that there could be a <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-recession-credit-bank-of-america-selloff-bonds-2023-10">credit event</a> and a wave of corporate bankruptcies on the horizon, Bernstein said.However, the more likely explanation is that the most <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-recession-credit-bank-of-america-selloff-bonds-2023-10">expensive stocks on the market are way overvalued</a> and are headed for a correction, while the bond market signals rising strength for the rest of the companies that make up the S&amp;P 500. "Fundamentally, it makes zero sense. The bond market is saying corporate profits are going to be strong … but the equity market with this incredibly narrow leadership of seven companies is saying that it's an apocalyptic earnings outlook," he told Business Insider in an interview. "I think the <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-bubble-warning-signs-signals-ai-stocks-earnings-profits-2024-6">stock market's in a bubble</a> and the bond market is right."Stocks have flashed other warning signs that investors are too caught up in speculative fervor for a handful of name. The top 10 stocks in the S&amp;P 500 make up 35% of the benchmark's total value, the highest percentage ever recorded, according to analysis from Apollo.<div type="image" title="S&amp;P 500 top stocks" height="512" width="897" msid="110919123" hostid="261" sizebytes="17134"></div>And when looking at the market cap of the largest stock on the market compared to the 75th percentile of stocks, the market looks to be the most overvalued since 1932, according to <a target="_blank" href="https://www.goldmansachs.com/intelligence/pages/is-the-sp-too-concentrated.html">Goldman Sachs economists</a>.<div type="image" title="S&amp;P 500 largest stocks" height="1150" width="1518" msid="110919121" hostid="261" sizebytes="82730"></div>Bernstein didn't have a prediction for when the bubble might burst, but it could inflict serious "damage" on the economy, with equity losses that rival the <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-nasdaq-crash-dotcom-bubble-comparisons-fed-inflation-rates-2022-6">dot-com crash</a>, he warned.After the boom in internet stocks, the Nasdaq Composite dropped 78% from its peak, and tech stocks continued to struggle over the next 14 years. That paved the way for a "<a target="_blank" href="https://markets.businessinsider.com/news/stocks/tech-stocks-ai-bubble-dot-com-lost-decade-rba-nvda-2024-2">lost decade</a>" in the stock market, with the S&amp;P 500 losing 1% from 1999 to 2009."That's what I think we're looking at," Bernstein warned. "It's multiple years of significant underperformance."But for investors who have diversified away from the most expensive mega-cap tech stocks, the bubble popping would be good news for their portfolios. While large-cap stocks tanked during the lost decade of the 2000s, small-cap, energy, and emerging market stocks did exceedingly well. The <a target="_blank" href="https://finance.yahoo.com/quote/%5ERUT/history/">Russell 2000</a> gained 48% from 1999 to 2009 and the <a target="_blank" href="https://curvo.eu/backtest/en/market-index/msci-emerging-markets-imi?currency=usd">MSCI Emerging Markets IMI Index</a> soared 145% in that time. Bernstein says his firm is bullish on everything except the top stocks in the market today, which have soared amid Wall Street's hype for AI. In a previous note, he said the stock market's shifting leadership from the most-hyped names to underloved equities presents once-in-a-generation opportunity for investors."We like everything except for seven stocks. I actually think the opportunity set is probably the broadest it's ever been in my entire career," he said. "I think the opportunity is monstrous here."

Mega-cap stocks are overvalued and risk a big correction, according to a CIO. Here's why that presents a 'monstrous' buying opportunity. 

<ul class="summary-list"><li>Brian Chesky, a former hockey player and industrial design student, is <a target="_blank" href="https://www.forbes.com/profile/brian-chesky/?sh=67d0629444d3">now worth $7.9 billion</a>.</li><li>Chesky started Airbnb after renting out his apartment to conference-goers who couldn't find a hotel.</li></ul>Brian Chesky has helped Airbnb bounce back from many obstacles — and built his Silicon Valley legacy along the way.The now-43-year-old CEO majored in industrial design at the prestigious Rhode Island School of Design and also dabbled in hockey and bodybuilding in his 20s.After graduation, an idea he hatched with his San Francisco roommate Joe Gebbia blossomed into tech unicorn Airbnb, which has positioned Chesky as one of Silicon Valley's key players.As of August 2024, Airbnb is worth nearly $73 billion. It had its first profitable year in 2022, and has become synonymous with short-term rentals across the US.Still, the company's stock fell a record 14% in the second quarter of 2024, and <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/airbnb-stock-price-consumer-demand-slowing-inflation-travel-pandemic-spending-2024-8">Airbnb noted in its earnings call</a> that travelers aren't booking as many stays.Chesky owns an estimated 11% of the short-term rental giant. His current net worth is $7.9 billion, according to <a target="_blank" class="" href="https://www.forbes.com/profile/brian-chesky/?sh=67d0629444d3">Forbes</a>, which also ranked him as one of the most eligible billionaires in the world alongside Kim Kardashian and Elon Musk.Here's how Brian Chesky, an upstate New York native, became one of the richest young tech founders in America.<h2 id="d229cff2-2c44-4ed3-928c-6af27d384255">Before running Airbnb, Chesky attended art school</h2>Chesky grew up in Niskayuna, New York, north of Albany. He was into hockey, and he also liked to draw and design new versions of Nike sneakers, which turned into an interest in art.Chesky's high school yearbook quote was, "I'm sure I'll amount to nothing." He thought it was funny — his dad didn't.In 1999, Chesky attended Rhode Island School of Design, where he served as captain of the hockey team and studied industrial design.At RISD, Chesky met Joe Gebbia, with whom he would eventually cofound Airbnb. Right before graduation, Gebbia reportedly pulled Chesky aside and said, "Before you get on the plane, there's something I need to tell you. We're going to start a company one day, and they're going to write a book about it," Fortune <a target="_blank" class="" href="https://fortune.com/longform/brian-chesky-airbnb/">reported</a>.<h2 id="abd9e7b9-adfe-4a41-abd9-bce2ff8658fb">It all started as a quick way to make cash</h2>He eventually moved to San Francisco and in with Gebbia, but the two unemployed grads soon ran out of cash.Then, when a design conference came to town in October 2007 and caused all the hotels to sell out, Gebbia pitched Chesky the idea of renting out their space to those who couldn't find a place to stay — a "designer's bed and breakfast."The roommates ended up housing three people that weekend, offering up air mattresses and floor space, as well as Pop-Tarts for breakfast.A few months later, Gebbia and Chesky were joined by their engineer friend, Nathan Blecharczyk. Together, the three guys started what was then called <a target="_blank" href="http://Airbedandbreakfast.com">Airbedandbreakfast.com</a> in August 2008. Chesky "gravitated naturally to the role of leader," Fortune wrote in 2015.<h2 id="730ed8fb-268e-48f2-8b59-8183521d5ee6">Things took off for Airbnb in the 2010s</h2>Since then, Airbnb has not only shortened its name but has listings in more than 220 countries worldwide. The company has served an estimated 1.5 billion guests since its 2008 launch.In 2015, Chesky was named as one of the most influential people alive in <a target="_blank" class="" href="https://time.com/collection/2015-time-100/">Time 100</a>. <a target="_blank" class="" href="https://www.businessinsider.com/jony-ive-airbnb-brian-chesky-time-100-list-2015-4">Apple's former design chief, Jony Ive,</a> wrote at the time that Chesky's "audacity is fabulous."Chesky is not married, though he was previously in a relationship with artist Elissa Patel. He has two golden retrievers named Sophie and Sandy.<h2 id="38a076e1-a0d8-421f-9da4-2059bc3e11b6">The pandemic caused ups and downs for the company</h2>Fast forward to February 2020, when cancellations began rolling in due to a mysterious virus. Chesky and his team were three weeks away from filing for Airbnb's IPO.The early days of the pandemic seemed grim. Airbnb's revenue plummeted 80% due to <a target="_blank" class="" href="https://www.businessinsider.com/airbnb-ipo-goldman-sachs-pandemic-2022-7">COVID-related travel restrictions</a>. The company burned through its cash reserves and opted to raise $2 billion in debt and equity financing to stay afloat. Its valuation, previously $31 billion, slipped to $18 billion.<a target="_blank" class="" href="https://www.businessinsider.com/airbnb-boss-laid-off-staff-pandemic-asked-ceos-hire-thousands-2023-10">Airbnb laid off 1,900 employees</a>, about 25% of its full-time staff. Employees said they felt betrayed, but Chesky was also praised for his handling of the situation. Workers were given generous severance packages, and Chesky offered to help find them jobs elsewhere.He reflected on the firings during an appearance on <a target="_blank" rel=" nofollow" href="https://www.youtube.com/watch?v=ia6Di_ytiSE">The Diary of a CEO podcast with Steven Bartlett</a> in 2023."This is how I want to be remembered. I only remember that when I'm in peril, we're in our darkest hour, I'm not just worrying about how we will survive, I'm trying to call CEOs of other companies to see if they can hire our people," Chesky said.But then travelers burned out from lockdown turned to <a target="_blank" class="" href="https://www.businessinsider.com/vacation-rentals-jump-127-percent-april-may-domestic-travel-surge-2020-5">Airbnb over traditional hotels</a>. Bookings bounced back by as much as 127% between April 2020 and May 2020.<h2 id="06fce8ec-091e-4bbf-a018-d35129707d79">Airbnb goes public</h2>Airbnb went public on December 10, 2020, under the Nasdaq ticker symbol ABNB. Barron's called it a "blockbuster" IPO. On its first day of trading, the company was valued at $86 billion, <a target="_blank" class="" href="https://www.businessinsider.com/airbnb-ipo-valuation-tops-three-hotel-chains-combined-opening-day-2020-12">more than hotel rivals Marriott, Hilton, and Intercontinental combined</a>.Between 2020 and 2022, when interest rates were relatively low, many people bought homes to use as <a target="_blank" class="" href="https://www.businessinsider.com/millennials-first-homes-are-ones-they-rent-out-on-airbnb-2022-4">investment properties</a>, planning to rent them out on Airbnb and other short-term-rental sites to help cover their mortgages or simply make extra money.Demand for travel and experiences surged— so much so that Airbnb recorded its first profitable year in 2022, with a $1.9 billion profit. (It lost $352 million in 2021.)<h2 id="08c2048b-dd4b-4ead-ac82-e1a390b2d4e2">Chesky gives back often</h2>Chesky and Airbnb's two other cofounders publicly signed the Giving Pledge in 2016, a philanthropic initiative started by <a target="_blank" class="" href="https://www.businessinsider.com/billionaires-join-the-bill-gates-and-warren-buffet-giving-pledge-to-give-away-their-wealth-2016-6">Warren Buffett, Bill Gates, and Melinda French Gates</a>. By doing so, they promise to donate more than half of their wealth within their lifetimes.In 2022, Chesky personally donated $100 million to the Voyagers Scholarship run by former <a target="_blank" class="" href="https://www.obama.org/press-releases/the-obamas-and-brian-chesky-announce-the-inaugural-cohort-of-voyager-scholarship-recipients/">President and First Lady Obama</a>, which awards $50,000 in tuition for college juniors pursuing public service. Airbnb provides housing to recipients for summer internships and post-grad travel.When Russia invaded Ukraine in February 2022, Chesky announced the company would work to house 100,000 refugees with free two-week stays.In November 2022, <a target="_blank" class="" href="https://www.businessinsider.com/airbnb-ceo-brian-chesky-home-listing-free-aircover-guest-verification-2022-11">Chesky listed a guest room </a>in his home on Airbnb, featuring a queen-sized bed and a piece of Airbnb history: the novelty cereal boxes that Chesky sold in 2008 to fund the early days of the company. Chesky told outlets he would make cookies and go to the gym with guests.<h2 id="f8474071-426e-4de9-baaf-881789cfc349">Short-term rental crackdowns and layoffs plagued Airbnb after its profitable year</h2>Countless other real-estate firms conducted mass layoffs due to the cooling housing market. In March 2023, <a target="_blank" class="" href="https://www.businessinsider.com/real-estate-tech-layoffs-25-companies-that-have-laid-people-off-2022-7">Airbnb cut 30% of its recruiting staff</a>, representing 0.4% of its total headcount of 6,800.In August — amid protests from locals — <a target="_blank" class="" href="https://www.businessinsider.com/barcelona-airbnb-ban-florence-amsterdam-lisbon-are-regulations-working-2024-8">Barcelona</a> said it would push to fully ban and eliminate all of its registered short-term rental listings by 2028. Elsewhere, cities like New York, Tokyo, and Vancouver now require hosts to live in the units they're renting out.During its Q2 earnings call, Airbnb told investors that its marketing costs would grow faster than revenue in Q3."Kicking up marketing spend at a moment when demand is softening tends to be the ultimate backbreaker for an internet stock in our experience," analysts from RBC wrote in a note.This story was originally published in 2016. It was last updated in September 2024.

The rise of Airbnb CEO Brian Chesky, who overcame the COVID-19 travel slump and is now leading the company through rental crackdowns

<ul class="summary-list"><li>Officials in China are boosting property sector relief measures to blunt the impact of Evergrande's collapse. </li><li>The property giant was ordered by a Hong Kong court to liquidate this week. </li></ul>Policymakers in China have rolled out new measures to guard the property sector against the fallout from the collapse of property developer Evergrande, which a Hong Kong court ordered to liquidate this week. Beijing announced its latest real estate "cure kit", which includes a new loan worth 330 million yuan ($46 million) to a state-backed development as part of the government's newly introduced "project whitelist" mechanism, China's <a href="https://www.stcn.com/article/detail/1109631.html" target="_blank" rel="noopener">state media reported on Wednesday</a>.The "project whitelist," initiated by China's Ministry of Housing and Urban-Rural Development, is meant to support a list of real estate companies eligible for credit, debt, and equity financing. Thanks to the mechanism, officials in Nanning, a city in Guangxi, extended the project whitelist to 107 developments, including a state-backed project securing a loan from China Mingsheng Banking Corp. Chongqing, in the southwest, has its own whitelist with 314 projects requiring 83 billion yuan in financing, <a href="https://www.cs.com.cn/cj2020/202401/t20240131_6388411.html" target="_blank" rel="noopener">China Securities Journal reported</a>. In a separate effort, China is <a href="https://www.reuters.com/markets/asia/chinese-major-cities-ease-home-purchase-limits-boost-sales-2024-01-31/" target="_blank" rel="noopener">lifting home-buying curbs for houses</a> in two of its major cities, Suzhou and Shanghai, followed soon by Guangzhou. Previously, residents in Suzhou were only allowed to buy up to three apartments with less than 120 square meters (1,291 square feet), and single non-Shanghai homeowners weren't allowed to buy homes in certain areas, per Reuters.The new measures are part of a wider <a href="https://www.businessinsider.com/china-economy-outlook-real-estate-property-banks-crisis-debt-default-2024-1">series of economy-boosting initiatives</a>, especially in the real estate sector, which constitutes one-quarter of the country's economy. The crisis in the property sector stems from huge debt and overbuilding in the last decade, which has resulted in a liquidity crisis for many property developers, including Evergrande. The firm is the world's most indebted real estate developer, with $300 billion in liabilities. The company's troubles sent <a href="https://www.businessinsider.com/china-housing-market-explainer-cost-debt-wealth-evergrande-impact-2021-9" target="_blank" rel="noopener">country's property sector</a> into a tailspin starting in 2022 when it defaulted on some of its offshore bonds. On Monday, a Hong Kong court <a href="https://www.businessinsider.com/china-property-real-estate-crisis-unlikely-rescue-evergrande-offshore-creditors-2024-1">ordered Evergrande's liquidation</a> after two years of attempted restructurings.China is moving mountains to hold the real estate sector's crisis from pouring into other sectors. The government introduced its largest "economic first aid package" in two years, including <a href="https://markets.businessinsider.com/news/stocks/china-economy-outlook-liquidity-pboc-stimulus-stock-market-yuan-2024-1?_gl=1*198m1st*_ga*ODAxNTgzMjcxLjE3MDU5NTE2MDY.*_ga_E21CV80ZCZ*MTcwNjcwNDE3OS41NS4xLjE3MDY3MTI3MTAuMTIuMC4w">a $140 billion liquidity injection into the banking system</a> via a reduction in reserve requirements.Bloomberg also reported last week that officials are mulling a massive stock-market rescue package, as well as propping up stocks by banning big investors from lending certain shares for the purposes of short selling.

China rolls out fresh property relief measures to stem the fallout from Evergrande's meltdown

<keyword id="2918346" type="General" weightage="100" keywordseo="wework" source="Orion">WeWork</keyword> and certain of its entities filed for protection under <keyword id="431977" type="General" weightage="20" keywordseo="chapter-11" source="Orion">Chapter 11</keyword> of the US Bankruptcy Code. The company said its locations outside of the US and Canada are not part of this process. <keyword id="2015202" type="General" weightage="40" keywordseo="karan-virwani" source="Orion">Karan Virwani</keyword>, CEO at <keyword id="4052133" type="General" weightage="70" keywordseo="wework-india" source="Orion">WeWork India</keyword>, said in a statement that WeWork India operates independently of WeWork Global, and "our operations will not be affected in any manner". WeWork's franchisees around the world are similarly not affected by the proceedings in the US and Canada. David Tolley, CEO of WeWork said that now is the time for "us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet". "I am deeply grateful for the support of our financial stakeholders as we work together to strengthen our capital structure and expedite this process through the Restructuring Support Agreement. We remain committed to investing in our products, services, and world-class team of employees to support our community," he said in a statement late on Monday. Tolley said about 90% of the company's lenders have agreed to convert their $3 billion of debt into equity. Shares of WeWork that once peaked at over $500 fell to less than $1. WeWork had raised over $22 billion in funding from investors such as SoftBank, Insight Partners, BlackRock and Goldman Sachs. As of June 30, WeWork's real estate portfolio consisted of 777 locations across 39 countries, supporting approximately 906,000 workstations and 653,000 physical memberships. The company said it will continue servicing its existing members, vendors, partners, and other stakeholders in the ordinary course of business. WeWork expects to have the financial liquidity to execute these proceedings and continue business in the ordinary course. As part of the filing, WeWork is requesting the ability to reject the leases of certain locations, which are largely non-operational and all affected members have received advanced notice. WeWorks: India impact Karan Virwani, CEO at WeWork India, said in a statement that WeWork India operates independently of WeWork Global, and "our operations will not be affected in any manner". "It is a separate entity in itself, and we are not a part of this strategic reorganisation process. The Chapter 11 filing does not impact the operations of the global entity as it continues to remain in possession of its business, operating as usual," Virwani said. The process restructures the debts and the leases of WeWork Global in the US and Canada. "WeWork India is backed by majority stake holder Embassy Group, and is committed to investing in the future of our business. We remain fully focused on delivering exceptional and innovative flexible workspace solutions for our members in the region," Virmani added.

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