With an economic recession looming, some companies are destined to perform better, while others appear to be on the brink of bankruptcy. And with the Fed raising interest rates, a slowing economy and less liquidity, the latter seems increasingly likely
Zoom Disrupted WeWork's Business Model That Didn't Work
Summary
- WeWork and Zoom both have big visions for how they want to shape the world of business and communications.
- It is becoming increasingly likely that WeWork will go bankrupt as Zoom pushes up its profits and grows incredibly fast.
- Going long Zoom and short WeWork could produce a wildly asymmetric risk-reward curve, according to our analysis.
- It is our strong belief that going long Zoom, short WeWork can even deliver significant alpha in a recessionary environment.
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