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WeWork's CEO says his $47 billion company is recession-proof. Industry watchers aren't convinced.

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WeWork, founded in 2010, hasn't gone through a downturn. Analysts say any market drop could hit the company much harder than its tech peers, like Uber.

WeWork showed double-digit growth numbers in the first quarter - but that's not enough for some analysts.

Wallace said a healthier number for WeWork would be locations with waiting lists, rather than with 10% vacancy. He compared the company to Uber, which, in a downturn, would see expenses decrease almost in tandem with revenue, since the car company has comparatively little physical infrastructure and long-term liabilities.

"My basic view is that the business model is 'sound' and that much of the losses are driven by expansion," Lane told Business Insider.

That doesn't seem to bother the big office REITs that Oxford covers, many of which, including Boston Properties, have WeWork as a tenant.

 

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I agree, no way this thing exists in a recession.

OldTakesExposed ✍🏻

Lmao ugh huh

Who knew real estate was counter cyclical

Just wait until the startup bubble bursts, as I discussed here - 'WeWork's $1.9 Billion Loss Is A Typical Tech Bubble 2.0 Story':

The article is gated. Would love to learn his thought process/evidence as how he arrived at this conclusion. Practice wisdom would suggest they’d be very susceptible.

A company that is dependent on a growing economy is recession proof? My biggest concern about this company is a delusional CEO.

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WeWork's CEO explains why he thinks his $47 billion company is recession proof, and how he keeps his ego in check as a young billionaireWeWork cofounder and CEO Adam Neumann told Business Insider it is losing money to set up long-term success around the world. Narrator: it wasn't recession proof By the time WeWork would be making money, their 'tenants' will realize that they are paying through the nose. They can do the same work at any Starbucks for free.
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