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According to the prospectus, they lose so much money because they are building out new locations. Their break even point takes about a year for an individual location.

So theoretically, they have a path to profitability. I just wonder where they get the cash in the meantime. >$1B/year burn rate, ouch.



Wouldn’t it be from the IPO? If they sell 10% of the company, it should raise billions.


That sounds like a ponzi scheme, not an investment.


I would never invest in WeWork, but no, not at all. A Ponzi scheme takes new investor dollars to pay the earlier investors’ “returns”.

Taking new dollars to grow the company to generate future profits is actually the definition of “investment”.


A ponzi scheme requires fraud. If you've evidence of fraud going on here then perhaps you should report it to the SEC.


Isn’t that like a trend these days? Unless I’m missing something, can you please explain?


The only difference between those two concepts is malice.


And yet, their operating margin before any growth spend (or G&A) is a meager 20%.

I suppose this has to do with relatively low average occupancy rates? I wasn't able to find occupancy rates on their existing locations in the S-1.


I don't wonder that, cash in today's climate is easy to get.

What I wonder is 'How spectacularly will their business implode if a recession starts?'


> I just wonder where they get the cash in the meantime. >$1B/year burn rate

They're raising up to $6B in a debt offering.


Actually building or leasing?




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