AuthorCWT |
Back to Blog
Almost everyone has heard of the company WeWork by now. There's been tv shows, podcasts, books, and more covering WeWork's rise to an almost $47 billion valuation and huge crash following after. The story really deserves a sequel because after that it went from going public via SPAC at a $9 billion dollar valuation to being worth around $160 million at time of writing.
When WeWork first went public, I was hoping the company would be able to turn things around. I didn't buy any shares of the company, but I have always liked the overall idea of WeWork. I didn't think it should have ever been valued like a tech stock, but I do think the overall idea of coworking spaces like WeWork is a good idea. When they went public, I was hoping they would have an amazing redemption story. That has obviously not been the case. At a $160 million dollar valuation, I worry for WeWork. The company has lost billions of dollars over the last few years, and while the company claims that it is good on cash and reaching profitability, I have my doubts it'll get there. If WeWork keeps losing money at the rate that it has been, I wonder how it can keep raising more at its current valuation. Who's going to invest billions into a company at a $160 million dollar valuation? Hopefully, WeWork does achieve profitability before it runs out of cash. WeWork has also just replaced their CEO after a catastrophic last quarter which caused the stock to fall to where it is now. Fitch Ratings also stated that WeWork defaulting on its debt is a real possibility. I personally believe that the company is done. I hope to be wrong, but this is not a stock that I would buy myself. Either way, the story of WeWork, who in 2019 was worth around $47 billion dollars and fell to around $160 million in a 4 year period, will be told for a long time. Follow Finance by CWT on social media down below!
0 Comments
Read More
Leave a Reply. |