About WeWork (WE)

WeWork, trading under the ticker symbol WE, is a real estate company that provides shared workspaces, office services, and a community for startups, freelancers, and enterprises. Founded in 2010 by Adam Neumann and Miguel McKelvey, WeWork quickly grew its network of coworking locations in top cities globally.

WeWork’s business model involves leasing office buildings using long-term liabilities, renovating the spaces with modern aesthetic designs, and then offering flexible access via short-term memberships. Members can use WeWork spaces for coworking, meetings, events etc. Revenue comes primarily from membership fees.

Under Neumann’s leadership as CEO, WeWork expanded aggressively and was able to raise billions in venture capital. At its peak in 2019, WeWork had 528 locations in 111 cities worldwide. It had achieved a valuation of $47 billion and was one of the most hyped startups.

However, when WeWork filed for an IPO in 2019, it faced intense scrutiny from public markets over its finances. Although revenue was growing quickly, the company was unprofitable and burning through cash. Critics also highlighted issues with Neumann’s control and self-dealing.

The failed IPO marked the beginning of WeWork’s downward spiral. Neumann was ousted as CEO and the company only avoided bankruptcy after a bailout from Softbank at a valuation below $10 billion. This represented an over 80% drop from its peak.

After major restructuring and cost cutting, WeWork went public in October 2021 by merging with the BowX SPAC at a valuation of $9 billion. But the company still faces skepticism around its business model and path to profitability. In fact, Its stock price continues to struggle after the SPAC deal.

WeWork Historical Performance

WeWork has experienced extreme highs and lows throughout its journey in the business and stock market landscape. Let’s delve into the company’s historical trajectory:

Early Beginnings: 2008-2015

WeWork’s origins trace back to 2008 when Adam Neumann and Miguel McKelvey founded GreenDesk, an eco-friendly coworking space in Brooklyn. By 2010, they transitioned this into WeWork, opening their first location in Manhattan in 2011.

Early funding came from investors like real estate developer Joel Schreiber. By 2014, WeWork had become New York’s fastest growing office lessee, attracting investments from J.P. Morgan, T. Rowe Price and Goldman Sachs.

Expansion and Challenges: 2016-2018

In 2016, WeWork raised $430 million at a $16 billion valuation. But it also faced layoffs and a hiring freeze that year. By 2017, WeWork had expanded globally, entering China and Southeast Asia, and achieved a $20 billion valuation.

SoftBank became a major investor in 2018, acquiring a warrant to buy shares at a $42 billion valuation. WeWork also made acquisitions like the Chinese coworking firm Naked Hub.

Turbulence and Reckoning: 2019-2020

WeWork planned an IPO in 2019 at a $47 billion valuation. But intense scrutiny of its finances and governance led to its postponement. Co-founder Adam Neumann resigned as CEO as the company’s valuation plunged below $10 billion.

The COVID-19 pandemic in 2020 further strained WeWork, leading to layoffs and a shift towards slower growth.

Recent Developments: 2021-2023

WeWork went public via a SPAC merger in 2021 at a $9 billion valuation. But by April 2023, its stock had fallen below $1, valuing the company at just $360.9 million. By August 2023, WeWork was contemplating Chapter 11 bankruptcy protection.

Wework Current Stock Analysis

WeWork’s performance in the stock market is influenced by various factors, both fundamental and technical.

Fundamental Analysis

• Financial Health: WeWork reported an Earnings Per Share (EPS) of -$7.769. The forward EPS estimate is -$11.2, indicating potential challenges in profitability.
• Revenue Streams: The company’s revenue for the last 12 months is approximately $3.36 billion, with a quarterly revenue growth (YoY) of 3.6%. The gross profit for the same period stands at $2.52 billion.
• Profitability: WeWork’s operating margin is -25.16%, and the profit margin is -48.69%, suggesting challenges in converting revenues to net income.
• Position in the Co-working Space: WeWork is a major player in the co-working space sector. Despite its financial challenges, its brand recognition and global presence make it a significant entity in the flexible workspace industry. The potential for growth based on these fundamentals is contingent on the company’s ability to manage its debts, streamline operations, and adapt to market demands.

Technical Analysis

• Stock Price Movements: The current stock price for WeWork is $2.65. Over the past year, the stock has seen a decrease of 32.11%. The stock’s 52-week range indicates significant volatility, with a high of $368.90 and a low of $40.83.
• Moving Averages: The 50-Day Moving Average for WeWork is $71.02, suggesting a bearish sentiment as the stock is trading significantly below this average. The 200-Day Moving Average stands at $151.12, further emphasizing the stock’s downward trend in recent months.
• Technical Indicators: The significant gap between the current stock price and its moving averages indicates a strong bearish trend. Investors should monitor these technical indicators closely, along with other metrics, to gauge potential future movements.

WeWork Stock Forecast & Price Prediction

Based on current stock analysis and historical performance, Here’s the the projected stock prices for WeWork in the coming years.

WeWork Stock Price Prediction & Forecast 2024

By 2024, WeWork’s stock is forecasted to experience a notable rise. The average stock price is projected to be $8.27, which represents a growth rate of +212.08%. In a bullish market scenario, the stock might peak at $12.05, while in a more conservative scenario, it could hover around the $6.18 mark.

WeWork Stock Price Prediction & Forecast 2025

Moving into 2025, the momentum for WeWork’s stock is anticipated to continue. The average stock price is expected to climb to $12.16, which means a growth of +358.87%. On the higher end, optimistic projections place the stock at $15.32, while a more cautious estimate suggests a minimum price of $10.11.

WeWork Stock Price Prediction & Forecast 2026

By 2026, WeWork’s stock trajectory is predicted to remain on an upward trend. The average stock price for the year is forecasted at $14.42, translating to a growth of +444.15%. In a positive market environment, the stock could potentially reach a high of $18.07, while the lower end might see it stabilize around $12.24.

WeWork Stock Price Prediction & Forecast 2027

As we approach 2027, WeWork’s stock is projected to further solidify its growth. The average stock price for this year is anticipated to be $16.52, which is about +523% growth. In an optimistic market scenario, the stock could soar to a high of $22.46. On the flip side, a conservative estimate might see the stock at a minimum of $14.13.

WeWork Stock Price Prediction & Forecast 2028

By 2028, the forecast suggests a continuation of WeWork’s upward trajectory in the stock market. The average stock price is predicted to be $18.43. Bullish projections could see the stock peak at $25.12, while more reserved estimates place it at around $15.09.

WeWork Stock Price Prediction & Forecast 2029

Heading into 2029, WeWork’s stock shows no signs of slowing down. The average stock price for this year is expected to reach $22.56, which represents a growth rate of +751.51%. In a thriving market, the stock might climb to a commendable $30.18, while in a more subdued scenario, it could settle around the $18.34 mark.

WeWork Stock Price Prediction & Forecast 2030

As we transition into the next decade, 2030 is set to be a pivotal year for WeWork. The forecasted average stock price stands at $26.28. In a bullish market environment, the stock could potentially reach highs of $32.74. Conversely, in a more conservative scenario, it might hover around the $20.43 mark.

WeWork Stock Price Prediction & Forecast 2040

A decade later, in 2040, WeWork’s stock is projected to have undergone substantial growth. The average stock price is anticipated to be a robust $50.79. If the market remains favorable, the stock could achieve a peak price of $60.52. On the other hand, a lower boundary estimate places it at around $40.47.

WeWork Stock Price Prediction & Forecast 2050

By mid-century, 2050, WeWork’s stock forecast paints a picture of sustained growth and market leadership. The average stock price is predicted to be an impressive $75.43. In the best-case scenario, the stock could soar to a remarkable $90.12, while a more restrained prediction suggests a minimum of $60.38.

Factors Affecting WeWork’s Stock Price

WeWork’s stock price in the future will be influenced by several important things.

Financial Performance

WeWork lost $888 million in the third quarter of 2022. To see their stock price go up, they need to earn more than they spend, and aim to make more than $4 billion every quarter.

Flexible Workspace Market Growth

Reports say that the market for flexible workspaces will grow by 15% every year and could be worth $13 billion by 2025. If WeWork can get a bigger part of this market, their stock price might go up.

Competition

WeWork has competitors. One big one is IWG, which has over 3,300 places around the world. If WeWork loses customers to IWG or other companies like Industrious, their stock price might go down.

Leadership

WeWork has had three different CEOs since 2019. They need steady leaders who make good decisions to make investors feel confident.

Commercial Real Estate Conditions

Right now, 15% of office spaces in the US are empty. This could be a problem for WeWork if fewer people rent their spaces or if they have to lower their prices.

Brand Reputation

In 2022, a survey found that only 1 out of 4 people would think about using WeWork for office space. This means WeWork needs to work on making people like and trust their brand more.

Macroeconomic Factors

Some people think there might be an economic downturn in 2023. If this happens, fewer companies might use WeWork, which could hurt their earnings.

Deciding if now is the right time to put money into WeWork needs careful thought, especially with the company’s recent ups and downs.

The Not-So-Good Points

• WeWork’s value in the market is now only $87.19 million. This is a lot less than its highest value of $47 billion in 2019.
• Even though the company is making $3.358 billion, it is still losing money. They lost -$229 million recently.
• WeWork spends more money than it makes. It spends 25.16% more than it earns and loses 48.69% of its total money. This means WeWork needs to be better at managing its money if it wants to make a profit.

The Good Points

• After a big drop in 2022, WeWork’s stock price went up a lot (2800%) in just one week. This is because the company is making changes to save money.
• WeWork is also talking with other companies around the world to save on rent. They also made a move that helped them stay on the NYSE (a big stock market).

But, Be Careful

• WeWork is spending a lot of money and has a lot of debt. This means they might run out of money and have to close. They are getting advice on how to avoid this.
• It’s important to be careful and watch how WeWork changes its business. Right now, it’s not clear if they will start making money again.

WeWork has a big dream for the future, but right now, they have some problems. They need to be better at saving money and making a profit. If you’re thinking of investing, it might be better to wait and see if things get better for WeWork.