WeWork failure the end of an era
WeWork’s travails and its failed IPO marks the end of the era of “endless capital for unprofitable businesses,” according Morgan Stanley equity strategist Michael Wilson.
He says, “It was one heck of a run, but paying extraordinary valuations for anything is a bad idea, particularly for businesses that may never generate a positive stream of cash flows.”
And matters could get worse for WeWork, with leading US developer Don Peebles warning that the company could default on its real estate obligations as it seeks to raise fresh funding. “Anyone looking at a building that has got significant WeWork occupancy has got to be very concerned,” he told CNBC.