[bksenior]

yea, no. It's simply an overpriced asset and the market is concerned that without an adjustment there isnt much room to grow in value.

I dont think anyone think WeWork is not a strong business model. Id even take it one step further in that it's not the cash burn thats really killing people, it's the valuation. I know theyre connected as a larger company should hypothetically be able to sell less of itself for more money, but at 1/3 of the valuation I think the market feels different about the biz. Although the social signal of being forced to cut does some real bad psychological voodoo.

[chris11]

I'm not sure that WeWork has a strong business model. WeWork is absorbing the financial liability of signing long-term leases, and not passing that risk onto their customers. So financial discipline is critical to their business plan. Customer growth without financial discipline will just increase those liabilities.

[bksenior]

Naw fam, you're ignoring the growing trend of short term leases and the value of a consistent repeatable brand in the space. It's not an industry killer, but they still do have a strong product.