wework mini

WeWork. Now, their stock has, their stock plunged this week, although it did recover, we'll tell you why. But in a call to investors, I guess it was their earnings call, their management said that there is substantial doubt exists about the company's ability to continue going, to continue as a going concern. So basically, their management has come out and said there's substantial doubt over whether the company can keep functioning because they are just losing so much money. Their stock was down about, I think it was about 40% on August 9th. It was around 22 cents down to around 13 or so cents that it just plummeted that day, okay, after this, this earnings call. And this was a $10 stock back in 2021. So it's lost 90% of its value since the beginning of this year. And, you know, there's a bit of backstory with this as well that we can go into that's, that's, that's pretty amusing. So they had a sort of IPO. I mean, they kind of failed at first to do their IPO and then they, they eventually succeeded, SoftBank stepped in and stuff, but their CEO, Adam Neumann, he's had all these crazy antics, which, you know, the whole IPO, the scrutiny on their IPO a few years ago drew attention to. And so I don't know, there's some pretty amusing, I mean, he's an Israeli businessman. He took marijuana on a plane, on a private jet from the US to Israel. The plane had to turn around because it got discovered, obviously the private jet company didn't want to be like, you know, illegal drug trafficking. International drug trafficking. Exactly. International illegal drug trafficking. And there's actually, there's actually an Apple TV show made about him and the whole company because his antics were just so kind of bizarre and entertaining. And we can, we can check out the trailer of that. It's Jared Leto playing Adam Neumann. He's Jared Leto and Anne Hathaway. And basically the story of how they, they started up WeWork. Come with me and let's build the future together. What do you care about? I'm a happy ass. Make a business out of that feeling. What do you think when I say workspace? Cubicles, ugly furniture, bad fluorescent lighting, death. Exactly. Future of work looks different. We're selling an experience. We. We need a name. We. We live. We dream. We work. in a fight. The smart guy or the crazy guy? Are you crazy enough? I may be, I may be. Is Adam for real? I wouldn't be with him if he wasn't. The wife, she works there. She helps him manifest things. We are on track to lose 400 million this year. I built this. Enough Adam! I feel trapped. You have to make them see. See what? It gives you a little bit of a taste. The story of it is similar to the Uber CEO, actually, Travis Kalanick, who was forced out of the Uber board as well, because he created a sort of toxic environment with Newman. I mean, there was a book about him called Billion Dollar Loser, which talks about all his antics and a lot of the stuff that went on and stuff. I can read you some of the stuff that he does. There was an article in the New York Post about it describing a sort of camping trip for, I think it was like 400 guests or something. Yeah, according to Billion Dollar Loser, every other attendee slept on air mattresses. Newman and his wife slept in a tent house suite that came with AC, heating, a king bed, four twin beds, several fridges, fireballs, eight picnic tables. The list of requirements also included a shuttle bus, a Range Rover, a Mercedes, two dedicated bartenders, supplies ranging from 400 plastic shot glasses to two platters of fresh sliced fruit per day. This was on their company retreat, which was like a week-long camping trip. Basically. So he was just- Not like a Wall Street movie needs to be made out of this guy. Well, you got a series with Jared Leto, so almost as good. He was just burning through cash, investors' cash, and they were losing billions per year. I actually had a friend who came from Japan. I can't say who this person is, but came from Japan to represent SoftBank for the IPO back in the day, like two years ago or three years ago now. And he said he came to do the IPO, and then because of Adam Newman, the whole thing got postponed. And he basically came to New York and did nothing and then just flew back. And they were talking all about his, you know, they were sharing some inside stories of his crazy antics. And my friend said apparently he spent like, you know, 100 days out of the year surfing or something. Like he wasn't even really running the company that well. Yeah. That's crazy. But the funny thing is, so SoftBank kind of stepped in more after that. They're really controlling it now. And the crazy thing is, though, after the stock dropped on August 9th, it's now kind of become like a meme stock. Like in my opinion, it's priced for bankruptcy, right? It's like a 10 cent stock. But retail investors have been flocking in to- I see your face. I mean, they're up 100 percent. So I mean, good for them. I mean, if you put a lot- That sounds really messy. I mean, it may be a day trade or something. Yeah, not even a, you know, I wouldn't even hold it that long. I'd be real. Given the market right now for commercial properties and considering WeWork doesn't own any of their properties and they're leasing space from these large buildings. It's like, yeah, it's up to- You've got a five day on that chart. Yeah, it's up. It's up now. But yeah, see- If you look at the five day on Google, you can see that it goes down and then it actually springs back up again to around 20 cents when all the retail investors piled in. Yeah, they're going to pull out. I mean, that 10 percent is probably the max, the 100 percent, the 10 cents you would have made if you would have, you know, per share. That's it. That's my not financial advice, but this is fire festival in the form of WeWork. Yeah. Yeah. I mean, also, I guess the end of the pandemic probably affected them too, because a lot of people going back to their actual offices, maybe there's less demand for WeWorks. Guessing. Yeah. Well, I mean, if you're doing a startup company, why would you waste any money in paying $800 a month for a WeWork temporary office or a WeWork, you know, a small solution? I looked into it, you know, three, four years ago when they were starting, when they had the momentum. And I visited one of their offices in Michigan. I visited one of their offices in New York, another one in Florida. And the price was just too much for startup based companies. You know, a couple of guys working out of their house is a lot cheaper than trying to get them to all work together in one building for a thousand dollars a month. So there was it was cool. It was a nice work environment. They had all the amenities, the coffee, the stuff where you're like, oh, I'd go work corporate because, you know, they never want you to leave. But you can also use it for individuals as well, though. Like you can get an individual membership and then you can get it. Yeah, that's what I was looking at. But it was still high. It was still high, isn't it? Yeah, it's still expensive. And if people are allowed to go back to their actual offices now, maybe they don't need this anymore. That's what I'm guessing. But I never saw it as being a really profitable business. I always saw it as like a loss leader the whole time. But maybe they'll pull out of the pull out like Amazon, you know, a loss leader for 20 years and then boom, billions. I hope they'll pull out of it because I think it's a cool idea, you know, being able to just sign up for an office and go and work. I mean, if you're a freelancer, you might just not want to work. You know, maybe you want to be around other people and have a coffee bar or whatever, you know, if they made it more reasonably priced, then I think it would be better. You know, they had when I went, it was $800 or four. Yeah, it was a lot. But, you know, the idea will live on. If we were collapsed, we're going to see somebody else come in and fill that gap. But it's going to be somebody like that as a large commercial holder properties, and they're sitting on it like an investment firm bank that dive dive volgues into doing this because they want to try to recoup some of their losses that they're getting hammered on. You know, that's that's the only thing I could see happening. We work itself.