In a Nutshell:
- WallStreetBets is back at it, this time with eyes on WeWork Inc.
- Shares witnessed a stunning rise of over 130% on a recent Thursday.
- Remember the GameStop saga? It’s round two, with WeWork in the spotlight!
The Backstory: The Rise of Meme Stocks
GameStop – The Genesis: Early 2021 set the stage for the emergence of ‘meme stocks’ through the WallStreetBets community. GameStop was under Wall Street’s heavy shorting radar. This caught the attention of retail traders who made a coordinated move, sending GameStop’s stocks soaring, challenging the traditional financial giants.
The Iconic Rocket: The rocket emoji became emblematic of WallStreetBets, pointing out stocks they believed would shoot up “to the moon.”
WeWork – A Tale of Peaks and Valleys
High Hopes: WeWork, co-founded by Adam Neumann and Miguel McKelvey in 2010, promised a new era of co-working spaces. They’d lease buildings, transform them into modern, shared workspaces and rent them out. Their dream was to reshape the traditional office paradigm.
Stumbles Along the Way: Despite being Manhattan’s largest private tenant in 2019, WeWork encountered its share of hurdles: financial inconsistencies, leadership issues, and a rocky path to IPO. A once $47 billion valuation tanked to $7 billion by year’s end. The pandemic’s impact only worsened matters.
A Clouded Future: With their recent financial statement reflecting “substantial doubt” about the company’s trajectory, it’s clear WeWork is on shaky ground.
WallStreetBets to the Rescue?
Social Media Stir: Key financial voices on X (previously known as Twitter) linked WeWork’s situation to GameStop’s 2021 run. The now-deleted post by @nikitabier showcased the decline of WeWork juxtaposed with GameStop’s spike.
Reddit’s Role: An analysis by a Reddit user on WeWork’s stock generated significant buzz. With comments like “I’m in” and “Picked up 5k shares to meme it”, it’s evident WallStreetBets members are again rallying behind a stock.
However, there’s a distinction: WeWork’s short interest is only 2.57%, a smaller number compared to previous favorites.
Stock Update: WeWork’s stock closed 46.34% up at 18 cents on that Thursday.
Wrap Up: Whether it’s a genuine investment conviction or just another meme-driven fling, WallStreetBets seems to have breathed new life into WeWork’s stock.
