WeWork (NYSE: WE) stock price is in a tailspin as the coworking space provider announced doubts about staying in business for long. The stock closed at $0.209 on Tuesday but plunged 24% in the after-hours. Additionally, WeWork also announced a $349 million loss for the six months that ended in June.
The recent price decline does not come as a surprise to many. The investors were already losing hope in the office space provider as the share price plummeted to cents within just two years of their exchange listing. The company recently lost its CEO, Sandeep Mathrani, and CFO, Andre Fernandez, which added fuel to the fire.
The Q2 earnings reports came out yesterday, which contained concerning results. As mentioned earlier, a $349 million loss was reported for the past six months. The company also reported a 72% occupancy rate for its offices, suggesting no improvement compared to August last year.
However, there is a silver lining as WeWork’s revenue increased from $593 million in Q2 2021 to $844 million in Q2 2023. WeWork’s EBITDA, a measure of a company’s profitability, also improved by $98 million year-over-year in the second quarter of 2023.
The following chart of NYSE: WE shows that the price dropped by 24% during after-hours trading. Considering the pre-market price action, the stock is retesting the June lows that lie around $0.16. WeWork’s recent performance has been underwhelming, and the company still faces many headwinds. To see bullish pressure on its share price, WeWork must overcome the negative sentiment.
If the bears manage to break the support level of $0.16, the WeWork stock price forecast will flip even more bearish. Such a move could trigger another bearish leg with a downside target of $0.07, which is a 0.618 fib retracement level.
In the meantime, you are also welcome to follow me on Twitter to keep track of my personal trades and the latest analysis on US stocks.
This post was last modified on %s = human-readable time difference 12:09