Market Reacts Positively to WeWork's Job Cuts

WeWork rose 1.6% during the morning session to $1.61 per share. As reported by Reuters: "Jan 19 ( Reuters ) - WeWork Inc ( WE.N ) said on Thursday it plans to cut about 300 roles across countries to cut costs as high inflation weighs on office workspace spending." You can read more about it here. For those of you thinking about investing in the stock, here is a brief look at the company's fundamentals.

The company will likely need to cut a more ambitious turnaround plan to address its galling lack of profitability:

Date Reported Cash Flow from Operations ($ MM) Capital expenditures ($ MM) Free Cash Flow ($ MM) YoY Growth (%)
2021-12-31 -1,912 -337 -2,249 3.1
2020-12-31 -857 -1,464 -2,321 41.64
2019-12-31 -448 -3,529 -3,977 n/a


Date Reported Total Revenue ($ MM) Operating Expenses ($ MM) Operating Margins (%) YoY Growth (%)
2021-12-31 2,570 1,879 -93.13 -14.26
2020-12-31 3,416 2,657 -81.51 13.4
2019-12-31 3,459 3,956 -94.12 n/a

At today's price of $1.61 per share, WeWork is -75.46% away from its target price of $6.58, and on average, analysts give the stock a rating of buy. 33.4% of the company's shares are linked to short positions, and 87.1% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.