171–180 of 346 posts
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Wouldn’t it be from the IPO? If they sell 10% of the company, it should raise billions.
That sounds like a ponzi scheme, not an investment.
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This is to protect the buildings from liability through issues with workers. You don't want to be sued by a worker for something and have the buildings on the table.
It’s also due to being able to take advantage of lower taxes on capital gains, which you can have if you structure the real estate part of the business to have income from “passive activity” versus “business activity”. https://www.irs.gov/businesses/small-businesses-self-employe...
You would literally have to be out of your mind to buy into this, especially as the founder cashed out $700 million right before IPO. Best. Short. Ever.
They are going to be screwed when there’s another recession, given that they don’t actually own the office space they rent out. This is a real gem: “Substantially all of our leases with our landlords are for terms that are significantly longer than the terms of our membership agreements with our members. The average length of the initial term of our U.S. leases is approximately 15 years, and our future undiscounted m…
Alternatively though, WeWork is an easy way for companies to reduce their expenses during a recession.
And more layoffs mean more people trying to be freelancers, and doing things on their own, which creates a greater need for coworking spaces.
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Whats the expectation here? That real estate will get 50% cheaper or that users will pay 100% more to rent an office?
There's a contribution margin graph on page 72, that kind of tries to explain away their high costs as costs related to their expansion and that their existing locations have a sizable margin that is hidden by all their expansion costs. I don't really buy it, but that sounds like the story they're trying to sell.
I didn't buy it to my loss until only recently.
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It's a property company that's planning tracking everything people do in their buildings. >WeWork's latest acquisition is a small software company with 24 employees. Euclid is a spatial analytics platform...Euclid's website says the company is "focused on redefining the workplace experience of the future." Translation: optimizing every aspect of the physical workplace so workers are their most productive. Euclid does…
Yeah, I don't see that providing the outsized gains they're hoping for. I've talked to a number of entrepreneurs who business plan is basically 1. Collect data 2. ??? 3. Profit And every time I quiz them on point 2, they get squirrely. They can never explain exactly how it works; at best I get hazy references to Google making lots from data, which is at best a partial truth. In this case, I doubt having that data wil…
Well, sure, but all they're being told is that data is the new gold. [0] And gold is valuable, so data must also be valuable. They tend to forget that not all data is gold, because 'some data is gold' isn't what they were told and also isn't fun.
0: https://www2.deloitte.com/nl/nl/pages/data-analytics/article...
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To do what? I'm not too familiar with them but what more do they have other than a website to look at potential spaces with some photos and a description and sign up for one? Maybe process payments as well?
The biggest tech challenge they have is figuring out how many conferences rooms to build out per X number of offices. Not enough, and you have a huge queue to use them, too many and you have lost office space rental. Outside of that there isn't much tech to go around. We used them before they were WeWork, when they were still GreenDesk in Dumbo. Overall it was great, and it's a great product given the flexibility and…
How is that a tech challenge?
The only actual tech they have is their swipe card access and room/desk booking systems
They might use some tech internally to optimise certain aspects of their business, but that would be like calling a coffee shop that does their finances in Excel a tech company
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Thats because Amazon was only unprofitable due to Capex and R&D. Their operating margin is fantastic, it was this promise that enticed investors! WeWork on the other hand is very ugly.
This is what seems to not be understood by a lot of investors and people commenting on investments. Amazon could have turned a profit years earlier if they wanted to. Instead it made more sense to continue spending all of their money on expansion and R&D. It's the same with Tesla. They are selling a shit ton of cars at good markup. If they wanted a profit, they could have one. They just don't want one right now.
Can you show you get this from? I see it repeated on these boards, ad nauseum, that Tesla is spending their "profits" on R&D and building infrastructure.
But in reality, you can see from their financial statements that Tesla's CAPEX spending is embarrassingly small for an auto company, and shrinking. They spent $2BB in 2018 and are on pace to spend half that in 2019. As a sibling comments states, their spending doesn't even cover depreciation of assets. For comparison, Ford spent almost $10BB on CAPEX last year, GM spent $10.8BB, VW spent over $12BB.
>If they wanted a profit, they could have one. They just don't want one right now.
You can't honestly believe this, can you? What are they waiting for? Why do they keep raising funds? Where is the money going?
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Actually it's pescatarianism, for whatever reason seafood doesn't count as meat.
Maybe it's because fish don't scream when you stab them, but idk.
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> they’re blown out by marketing photos, full-page charts, and branding Companies get a lot of latitude with the first few pages. Seasoned S-1 skimmers peruse that stuff, but save the digging in for the risk factors, financials and the accompanying notes.
Nit, peruse means to read carefully with an attention to detail.
That can't be normal, right? That's 10% of the entire company. It's more than Elon Musk got for Tesla by a long shot, and that was already controversial.