Stock of company slobberingly pushed by CNBC loses 98% of its value since end of 2021

If you've never done it, starting a company is like putting $100,000 and three years of your life on one number on the roulette wheel: No matter how good you are or how hard you work, most of the time it fails.  

If your a tech company the technology can leapfrog over what you're doing (thumb drives vs. CDs, anyone), or a RULE by some corrupt gruberment bureaucrat can double your costs.
Regardless, failing is hard as hell, and it hurts.  And if you've been there, it hurts to watch a well-run company doing good things fail for reasons out of the founder's control.

With that said, consider something a lot different: When the corrupt Mainstream Media gets paid to fawn over a company that's clearly headed for bankruptcy, I absolutely love watching lemmings and sheep jump on that stock (because it was pushed by the shills in the Media) and then watching it collapse--as anyone could have predicted.

In this case the company is called WeWork.  Its business plan was to lease entire floors of buildings, divide 'em into ten-foot cubicles, put in internet and phone lines and lease each cubicle to startup companies.  

And in a booming economy, it worked:  On April 9th of 2021--just ten weeks into the BOOMING biden economy (which continued to boom on inertia, before many of the regime's orders had kicked in)--the company's stock was almost $13 a share.  Five years ago one bank valued the company's "market cap" at $47 Billion.  Wow!  Say, anyone recall who was president five years ago?

So with the faaabulous Democrat-run economy under Porridgebrain, WeWork absolutely BOOMED, right?  You bet, citizen!  Just like all U.S. companies.

Oh wait...in 2022 it lost $2.3 billion.  And in the first half of this year it lost another $700 million.  It has $2.91 billion in long-term debt, and as of two months ago it had $205 million in cash and equivalents.

(Spoiler: the cash isn't enough to make the debt payments.)

(Wonder what banks will lose money when WeWork defaults on its loans, eh?  Think Janet Yellen will bail 'em out, in amounts FAR over the $250,000 limit for us ordinary people, as she did for Silicon Valley Bank?)

In 2019 the privately-held company tried and failed to go public, which would have netted its founders a fortune.  And next year when duh Chyna virus plandemic hit, with duh lockdowns ordered by Dem governors, many of WeWork's clients stopped leasing their cubicles.

Nevertheless, in 2021--with bidenomics just starting to BOOM--a "special purpose acquisition company" took WeWork public, hoping to cash in on eager investors (fired up by the likes of CNBC and MarketWatch).

How'd that work out?  Since the end of 2021, the stock has lost 98% of its value, closing yesterday at 14 cents.

Shares had been under $1 since late March, and since NYSE rules require companies to trade over $1 to keep their listing, the company was desperate to do *something.*

So it's doing a "reverse stock split," where shareholders get one share of new stock for 40 existing shares.  Based only on math, that should take the share price to $5.60.  We'll see.

Even if it continues to be listed, WeWork is in dire straits. Last week the company said that its mounting losses and dwindling cash "raise substantial doubt about our ability to continue as a going concern."  Gee, ya think?

"Pay no attention to the naysayers!  The economy is BOOMING, citizen!"

Source.

https://www.cnbc.com/amp/2023/08/18/wework-plunges-another-11percent-after-announcing-1-40-reverse-stock-split.html