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The Latest Meme Stock WeWork Jumped Over 20% in Morning Trading and Surged 70% in 2 Days

Benzinga2023-08-11

WeWork Inc stock gained over 20% Friday, maintaining its upward trajectory and triggering speculation of possible meme treatment meted out to other troubled companies like GameStop.

The stock price is on a roll since it expressed doubts over its ability to sustain the business.

The r/WallStreetBets community — the “apes” — is once again rallying behind the beleaguered stock. Early 2021 saw the birth of the ‘“meme stock” phenomenon on r/WallStreetBets. 

The community noticed that institutional hedge funds heavily shorted GameStop, so retail traders piled into the stock, triggering a massive short squeeze.

WeWork was founded on the vision of revolutionizing shared workspace, and it seemed poised to disrupt the traditional office setup. Founded in 2010 by Adam Neumann and Miguel McKelvey, the company’s innovative model involved leasing office buildings, renovating them to create vibrant co-working spaces, and renting them out.

Financial irregularities, leadership crises, and failed IPO attempts led to its dramatic fall.

The co-working space provider reported dismal second-quarter financial results this week.

The Q2 quarterly loss of 21 cents per share missed the consensus estimate of losses of 12 cents. Quarterly revenues of $844.00 million missed the consensus estimate of $850.13 million.

David Tolley has served as interim CEO since Sandeep Mathrani resigned, effective May 26.

The session volume crossed the 63 million mark vs. the average 100-day volume of 34 million.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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