WeWork stock price is in a tailspin after the reports of the company preparing to file for bankruptcy. The stock of the co-working office space firm has plunged to its all-time lows as the investors stepped over each other to dump their shares.
After a 46.49% drop on Wednesday, WeWork share price is trading slightly higher on Thursday. The negative price action in the stock comes at a time when the US equities are facing tailwinds from the 2nd consecutive pause in rate hikes.
It all started with a Wall Street Journal report that suggested that the company dealing in co-working spaces may file for bankruptcy as soon as next week. While the company was already struggling financially, the bankruptcy news still took most of the longterm investors by surprise.
As a result, WeWork stock price lost almost half of its value on Wednesday. Any recovery seems to be a far cry amid the ongoing uncertainty. This drop has reduced the company’s market cap to only $67 million which is only 0.13% of its valuation at the all-time high.
You don’t have to be a stock market wizard to tell how awful the NYSE: WE chart looks. WeWork Inc recently had a reverse stock split with 40 : 1 ratio. However, the recent plunge has offset most of the effect of the reverse split as the stock is trading at a mere $1.25 at press time.
While WeWork price forecast is looking very bearish, I have marked a few key levels on the following chart that need to be reclaimed for reversal. Out of all these levels, the 2.65 level is the most significant one as it was the September 2023 pivot. It might be like catching a falling knife if you intend to buy WeWork shares before a reclaim of this level.
This post was last modified on Nov 02, 2023, 14:06 GMT 14:06