WeWork Inc.

WeWork Inc. (NYSE: WE) is a global flexible workspace provider. The Company is engaged in delivering technology-driven turnkey solutions, flexible spaces, and community experiences. Its product offerings include Core space-as-a-service, WeWork All Access, WeWork On Demand, and WeWork Workplace.

Recent Business Updates:

• WeWork Inc. (NYSE: WE), the leading global flexible space provider, announced that Sandeep Mathrani will be stepping down as Chairman, CEO, and director of WeWork, effective May 26th. David Tolley, a current WeWork Board member, has been appointed as interim CEO, working alongside President and COO Anthony Yazbeck. Daniel Hurwitz, Lead Independent Director, will serve as Chairman of the Board and lead a special committee to search for a permanent CEO.
• Under Mathrani's leadership since February 2020, WeWork has undergone a significant transformation, overcoming challenges posed by the global pandemic and a tough macroeconomic environment. The company has successfully reduced costs, achieved revenue growth across all business segments, introduced new revenue streams, and strengthened its balance sheet. Key accomplishments during Mathrani's tenure include cost reductions of over USD 2.3 billion, consistent revenue growth, and substantial deleveraging of the company's capital structure.
• The company also reaffirmed its second-quarter guidance, expecting revenue between USD 840 million to USD 865 million and Adjusted EBITDA ranging from USD (10 million) to USD 15 million. WeWork anticipates its cash and cash equivalents at the end of the second quarter to align with or slightly exceed projections provided with its debt restructuring transactions.

Technical Observation (on the daily chart)

With a past year correction of almost 96.23%, the price has been in a persistent downward trend over the last year, with the medium-term also negative trend evident by 84.77% correction in previous three months. Also, the momentum indicator RSI (14 period) displays an oversold value of 23.82, indicating some consolidation or a reversal near the current support zone. Furthermore, there are signs of bullish divergence on the RSI, which further indicates some relief upward momentum or a consolidation near the current price levels. A break above the downward sloping trendline can further give some positive momentum in the stock after such a correction. Price is also below the 200-day SMA and 50-day SMA trend-following indicators, which can serve as dynamic short-term resistances.

As per the above-mentioned price action and technical indicators analysis, a ‘Speculative Buy' rating has been given to WeWork Inc at the closing price of USD 0.2635 as of May 17, 2023.

 Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is May 17, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.