- Airbnb's fortunes have suffered a massive setback in the wake of the spread of the coronavirus in China
- This comes after the company lost $322 million in the first nine months of the year 2019
- The company however recorded a profit of $200 million for the same period in the year 2018
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Online marketplace for arrangements for lodging and tourism experiences, Airbnb, is in the news after it reportedly lost $322 million in the first nine months of the year 2019.
The loss comes after a $200 million profit during the same period in the year 2018.
However, increased costs have led to concerns raised about the profitability of the company, Business Insider reports.
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Information available shows that the company continues to deal with rising costs as it grows, such as a $150 million investment to improve its platform as well as rising overhead and sales and marketing costs.
The latest audit conducted shows that the company is presently at a lower valuation compared to a previous private one of $31 billion.
The recent outbreak of the coronavirus caused Airbnb to suspend bookings in China and this could have an impact on its revenue as it seeks to go public in 2020.
The company reportedly has $3 billion in cash on hand and some investors are convinced it has a stronger business model compared to predecessors such as Uber.
In other news, a reporter with American media company, Bloomberg, has ranked Ghana’s economy as one to watch in the near future.
Bloomberg’s reporter, Noah Smith, argued that the country has performed creditably on development metrics and simply needs to break free of dependence on commodities.
The report added that there are key indicators that show a country is becoming a pacesetter.
It listed United Kingdom (UK) as the country that set the tone for change in Europe, Japan as the change maker in East Asia and possibly Ghana being the country to watch in West Africa.
It has been argued that Ghana has certain advantages in the sub-region with regard to geography, institutions and human capital.
As a country with a coast, Ghana has two ports that are used to ship and receive goods and with over 31 million people.
The country is therefore well-positioned to create a substantial domestic market. The report goes on to say that Ghana is well branded with regard to essential aspects of a nation’s building process such as quality of governance, freedom and democracy and the ease of doing business.
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