Market Overview

WeWork Considers Valuation Cut As Investors Question IPO Values

WeWork Considers Valuation Cut As Investors Question IPO Values

In another possible sign investors may be souring on high-priced IPO stocks, the parent of soon-to-go public WeWork is considering cutting its valuation to below $20 billion. Some investors are reportedly pushing the workspace company to call off its plans to go public.

The valuation concerns come as several recent IPOs have seen their stock drop in recent days.

Beyond Meat Down

On Monday, it was Beyond Meat Inc (NASDAQ: BYND) that was falling, with shares dropping around 4% after having surged more than 500% since the company’s spring IPO.

Late last week, D.A. Davidson started coverage of the imitation meat company with an Underperform rating, saying the market for the product may not be as large as hoped for.

For WeWork and parent company We Co., there were questions Monday about whether its planned IPO would go forward, according to the Wall Street Journal, which also reported on the possible drop in valuation.

The company faces questions from potential investors about its profitability and is planning meetings this week with potential investors to consider whether demand remains for an IPO, the Journal reported, citing unnamed sources close to the discussions.

A lowering of the value would follow an earlier cut in valuation, which had been pegged at more than $45 billion. 

Uber And Lyft

The skittishness around WeWork and Beyond Meat follows sell-offs for several other recent IPO stocks, including Uber Technologies Inc (NYSE: UBER) and Lyft Inc. (NASDAQ: LYFT), which both hit all-time low share prices last week.

Zoom And Crowdstrike

Some recent IPO stocks, including some that have been among the best-performing, have sold off despite strong results.

That’s what happened with Zoom Video Communications Inc. (NASDAQ: ZM), and  Crowdstrike Holdings Inc (NASDAQ: CRWD), both of which which beat Street expectations last week but saw investors pull back.

Related Links:

Bulls And Bears Of The Week: Beyond Meat, eBay, GE, Uber And More

What We Know About WeWork's IPO Filing

Photo by Ajay Suresh via Wikimedia


Related Articles (BYND + CRWD)

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Posted-In: The Wall Street Journal WeWork WeWork IPONews IPOs Media Best of Benzinga

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