applied know how
When The We Company pulled its IPO for WeWork in September it stopped disclosing its financial statements in the full, formal way required by SEC rules.
Instead, as the crisis at the company rumbles on, it published a less formal Q3 2019 presentation to investors,. That deck shows WeWork suffered a net loss of $1.3 billion on revenues of $934 million in Q3.… Read more
We live in a very trusting investment world.
The business model appears to be;
Uber has effectively sold itself to its investors as a tech company that simulates countless one-on-one negotiations between drivers and riders that, on an infinite timescale and with infinite patience is very much a technological product.
Except Uber isn’t quite doing this– its employing drivers who use their own cars to replace taxis (and delivery vans). Its clearly limited to the physical world, and isn’t infinitely scaleable at no cost.… Read more
Seems a lot of negative news is provoking a response
Softbank- after investing US$10.5Bn at a US$47Bn valuation in WeWork – now doesn’t want a WeWork IPO … one way not to recognise a potentially heavy investment loss is to close your eyes, ignore the evidence and pretend nothing has happened, reports the FT . A listing would expose the horrible truth about the allegedly hip workspace landlord isn’t worth its US$47Bn value.… Read more
Tech companies command fantastic valuations and are routinely exempt from doing things that tired old-fashioned analog companies do- like make a profit, or make strategic sense.
But really, what is a tech company? Soon to IPO, WeWork and Peloton, don’t have much in common: one company rents empty buildings and converts them into office space, and the other sells home fitness equipment and streaming classes, both, though, claim to be tech companies.… Read more