WeWork joins the cohort for IPO debuts this year
Over nine years, corporate landlord WeWork has earned a reputation as the go-to shared office start-up with about 401,000 memberships spread out across 425 locations, and now the company has finally filed its IPO to head to the stock market. The IPO will be valued at $47 billion and will be one of the most anticipated public offerings this year.
With trendy décor and tap beer and coffee, the start-up has gone upended the traditional office lease business model. But WeWork's vision comes at a steep cost, as the company more doubled its losses to $1.9 billion last year, even though revenue doubled to $1.8 billion.
To add to the worry, the biggest investor of WeWork, the Japanese technology conglomerate SoftBank with $2 billion put into the business, has opted not to buy a controlling stake in its business.
To advance its services, the company has also bought Meetup, the service for bringing together aficionados of common interests like learning Dutch or knitting, in 2017. It also opened a private school in Manhattan and invested in a wave-pool company.
However, much like other members in the IPO cohort like Lyft (LYFT) and Uber, analysts worry that companies who prioritize ambition than breaking even, runs the risk of suffering when economy worsens. This applies to WeWork as well, whose long shot vision has won the company billions of dollars in funding from deep-pocketed investors, like SoftBank. The main issue would probably be the company getting trapped in long term leases with a drop in number of subscribers.
LYFT's Stochastic Oscillator sits in oversold zone for 12 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where LYFT's RSI Indicator exited the oversold zone, of 31 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The 50-day moving average for LYFT moved above the 200-day moving average on December 04, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LYFT advanced for three days, in of 282 cases, the price rose further within the following month. The odds of a continued upward trend are .
LYFT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 05, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on LYFT as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for LYFT turned negative on November 21, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at .
LYFT moved below its 50-day moving average on December 12, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for LYFT crossed bearishly below the 50-day moving average on December 18, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LYFT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for LYFT entered a downward trend on December 24, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (14.205) is normal, around the industry mean (31.078). P/E Ratio (0.000) is within average values for comparable stocks, (160.694). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.755). Dividend Yield (0.000) settles around the average of (0.084) among similar stocks. P/S Ratio (1.684) is also within normal values, averaging (58.228).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. LYFT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LYFT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.
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