From what I've read, the WeWork locations in their mature markets are profitable, but they've been investing heavily in new/immature markets. Despite We's bizarre straddle between being a real estate company and trying to be a tech company, it's a fairly standard growth play: burn money now in order to gain more market share over time.
If they wanted to, they could slow down on new purchases/rentals/construction and likely become profitable without too much trouble. But that would of course be at the expense of growth.
Not saying they're a great company or that they deserve a crazy high valuation, but suggesting that they're unprofitable because they have a bad business model is missing the whole picture.
If they wanted to, they could slow down on new purchases/rentals/construction and likely become profitable without too much trouble. But that would of course be at the expense of growth.
Not saying they're a great company or that they deserve a crazy high valuation, but suggesting that they're unprofitable because they have a bad business model is missing the whole picture.