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.
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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Source: BusinessInsider - 🏆 729. / 51 Read more »