Is it “Tech Bubble” Time Again?

Do you remember when the “tech-bubble” blew up in 2000?

Companies went public for extraordinary amounts of money without having any assets or stable business plans.

Cue up the recent IPO filing for WeWork indicating that the company will be worth nearly $50 BILLION when it goes public.

Who?

That’s right, WHO is WeWork?

Reminiscent of the Tech Wreck, WeWork:

• Has never turned a profit.
• It doesn’t expect to turn a profit.
• It doesn’t have a plan to turn a profit.
• And it claims its mission is to ‘elevate the world’s consciousness’.

Wait!  What?

Elevate our consciousness?  What’s that supposed to mean?

It gets worse.  WeWork:

• Owns no real estate.
• Has almost no assets. In fact, WeWork’s primary asset is the office space it currently leases (i.e. does not own).
• And to be fair, they’re leasing tons of space. WeWork hopes to eventually lease 40 million square feet of office space.

Okay, let’s do some math here.

At $50 Billion, investors are essentially paying $1,250 per square foot of office space that WeWork is LEASING.

It gets better worse.  WeWork’s co-founder/CEO Adam Neumann, has a history of unethical behavior.

Earlier this year Neumann charged his own company nearly $6 million for the “We” trademark.

Shares in this IPO have dramatically diminished voting rights…further cementing his power over the company.

So, not only are investors dramatically overpaying for a company that has very few assets and burns cash with no end in sight, but they’re willingly giving up control to someone who has a history of enriching himself at their expense.

Can you say “Mark Zuckerberg” on steroids?

We’ve been down this road before folks…it doesn’t end well.

The market’s approaching Turbulent Times will fool most people.

Learn how to profit from it at: