41–50 of 213 posts
From Q3 results, it sounded like the company was profitable just on ride-sharing itself and was losing a ton of money on eats + cargo + autonomous vehicles R&D. I wonder what a fair valuation would be for just the ride-sharing business if they were to spin off / shut down every other part of their business and essentially become Lyft.
Earlier quoted context omitted.
What's their cash on hand position, I believe I saw that there's 13B, after adding 8B in the IPO, that seems like a ton of cash on hand for a business that isn't showing any signs of turning of profit. Could they not just without any further cash infusion continue to lose similar amounts for the next three years and be cash solvent. Does that then not give a big incentive to figure out how to become profitable in the…
The core business is very profitable. Loss-making is happening in their less mature product categories and expansion efforts.
Earlier quoted context omitted.
What's their cash on hand position, I believe I saw that there's 13B, after adding 8B in the IPO, that seems like a ton of cash on hand for a business that isn't showing any signs of turning of profit. Could they not just without any further cash infusion continue to lose similar amounts for the next three years and be cash solvent. Does that then not give a big incentive to figure out how to become profitable in the…
The core business is very profitable. Loss-making is happening in their less mature product categories and expansion efforts.
Time to buy the dip
Earlier quoted context omitted.
It's still a 45B company...still the largest and most successful company to come out of SF this decade.
It's not successful though. WeWork is still valued at 47B technically speaking today. They are a company that only loses money, has a horrid culture and does some morally reprehensible things. Their true value is their logistics software. If they would lease/sell that to other industries they would be rich beyond belief.
So I think people may be misinterpreting this drop: lock up expired today, so the sales today -- throughout the day -- are a result of the lock up expiry. This pre-market drop is the result of people anticipating the drop and selling before the market opens. It is also, partly, driven by the disappointing earnings from 3 days ago, and indeed the drops over the last few days have been about as large. For what its wort…
In general, it is impossible to know what is priced in or not.
Time to buy the dip
On a more serious note, I'm not sad to see this. I hope companies trying to disavow all corporate responsibility by claiming they're only responsible for the technology behind their platform and not the effects of running the platform the way they do is only a fad. Their stock price obviously isn't a proper indicator of this trend bucking, but I'm glad that they, being the poster child for this sort of foolery, aren't the apple of every tech investor's eye anymore.
Earlier quoted context omitted.
It's still a 45B company...still the largest and most successful company to come out of SF this decade.
It's not successful though. WeWork is still valued at 47B technically speaking today. They are a company that only loses money, has a horrid culture and does some morally reprehensible things. Their true value is their logistics software. If they would lease/sell that to other industries they would be rich beyond belief.
How much wealth was redistributed upwards? Who benefited from Uber other than the founders and maybe 1% of the entire business? I find it highly unethical for such a business to be able to ignore so many laws most of which protect the have nots to build a system that moves most of the profits to the haves. Then dump the broken business to IPO for fools to buy up and loose as well.