WeWork (NYSE:WE) stock is rising on Friday despite the office space company warning investors it might not be able to stay in business.
According to WeWork, there is “substantial doubt” that it will be able to continue operations over the next year. This is due to current liquidity levels, losses and projected cash needs, as well as an increasing number of customers no longer doing business with the company.
WeWork says it needs to complete several goals to keep its business going. Among these are reducing rent and tenancy costs via restructuring, increasing revenue by halting member churn, controlling expenses, as well as seeking extra capital.
David Tolley, interim CEO of WeWork, said the following about the plan:
“The company’s transformation continues at pace, with a laser focus on member retention and growth, doubling down on our real estate portfolio optimization efforts, and maintaining a disciplined approach to reducing operating costs.”
WE Stock Earnings
The warning for WE investors came alongside the company’s Q2 earnings report. That saw it bring in earnings per share of -21 cents alongside revenue of $844 million. These are mixed results next to Wall Street’s estimates of -9 cents per share and revenue of $840.07 million.
All of this news has more than 10 million shares of WE stock trading hands this morning. That’s not a bad start considering markets haven’t opened yet, and its daily average trading volume is about 34 million shares.
WE stock is up 27% Friday morning but is down 86.7% year-to-date as of Thursday’s close.
Investors keeping up with all of the latest stock market news will want to stick around!
InvestorPlace is offering up all of the hottest stock market news for Friday! That includes a dive into the biggest pre-market stock movers this morning, the latest news concerning LQR House (NASDAQ:LQR), and more. All of that is ready to go at the links below!
More Friday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
- LQR Stock Alert: What to Know as LQR House Starts Trading Today
- WE Stock Alert: WeWork Surges 40% on Bankruptcy Warning
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
