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How WeWork is losing billions as it considers an IPO

By CNBC

The We Company, parent company of WeWork, is the latest in a string of start-up unicorns set to go public this year. It is valued at $47 billion, but like other newly public companies such as LyftRead full story

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  • The interesting part of this trend to me is the stampede of imitators that are trying to do the same, without the brand, or the size to benefit from economies of scale - this drives up the real estate price which is killing the underlying spread that makes them money.

  • Unfortunately, as wonderful as wework is for us as consumers who use and love the services, the challenges that the business model is as leaky as a sieve. The more important and complicated challenge is to look at the banking ecosystem and ask a question about recent IPOs and why there is a massive trend towards raising money in the public markets to fuel business models that bleed cash. Independent and well-thought-out equity research is desperately needed to analyze fundamentals about companies

    Unfortunately, as wonderful as wework is for us as consumers who use and love the services, the challenges that the business model is as leaky as a sieve. The more important and complicated challenge is to look at the banking ecosystem and ask a question about recent IPOs and why there is a massive trend towards raising money in the public markets to fuel business models that bleed cash. Independent and well-thought-out equity research is desperately needed to analyze fundamentals about companies and their paths to profitability in pre IPO marketing, not post issuance.

  • WeWork’s business model has never made sense to me. They take on massive fixed costs and assume they can keep above market occupancy rates from the appeal of their “community.” This along with aggressive growth. It seems just a matter of time for me before this all comes crumbling down.

  • Haven’t they learned anything from Lfyt and Uber? And remember all those articles that said “this time it’s different”? Where have they gone?

  • IPOs are the trend of the year. People have to remember you have a right to earn a profit you don't have entitlement to profits.

  • Ponzi scheme.

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