WeWork shares: is it the end?
From a multi-billion dollar company to ‘going concern’, IG financial analyst @AngelineOng takes a look at why WeWork is warning of possible bankruptcy.
(Video Transcript)
WeWork shares plunge
We're watching WeWork after the company raised substantial doubt about its ability to continue as a going concern. The company also said three board members had stepped down.
Taking a look at its shares now for you, as you can see there, it has had quite a steep fall. This is the broader view. However, it's continued to languish around that 21 level without any break in sight. And the company as well has been criticised for not being able to manage the transition after lockdowns, after people have returned to cities and also to work.
Tech sector layoffs
All this comes amid a huge amount of layoffs as well. Given that this is coming from the tech sector, WeWork is especially exposed to this. This is also interesting because it comes at a time when Zoom has been in the headlines as bringing up the shares there for you, which are all sessions on the IG platform.
Zoom made headlines after telling its staff to come into the office at least two days a week. Now, this policy applies to those living within 50 miles and follows a fall in the post-pandemic demand for video conferencing services.
So, really interesting time for those exposed and also servicing the space. We will keep a lookout for what happens to WeWork and we will break it as we get that information. For more videos from us here at IGTV, join us on Twitter at IGcom, Instagram and subscribe to our YouTube channel. Thank you.
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