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I fail to see how this company could survive a recession. The first thing companies do during a recession is reduce their headcount. Less headcount means less
by stewy85 7y ago
I fail to see how this company could survive a recession. The first thing companies do during a recession is reduce their headcount. Less headcount means less desks required.
- parenthesis 7y agoYes, it's a highly levered play on the mostly cyclical portion of a cyclical market.
- navigatesol 7y agoWhat is insane is that they are the biggest commercial real estate tenant in some of the biggest cities in America (and London).
- myalphabet 7y agoThis is my biggest concern. Regardless of if WeWork can 'survive' a recession, my fear is that they could easily cause a recession. If WeWork starts to go under, it could cause a real estate market collapse in some of the world's largest cities.
- generatorguy 7y agoI wonder which REITs have the most we exposure?
- jeltz 7y agoMany of their competitors have survived recessions just fine. You just have to either be diversified or have enough cash reserves. The issue is mostly that WeWork has too high costs and a too high valuation.
- generatorguy 7y agoTheir competitors have long term leases with the tenants that we doesn’t have.
- julienfr112 7y agoTheir competitors were profitable before the recession...