Zoom Disrupted WeWork's Business Model That Didn't Work

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Wright's Research
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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.

Cropped shot of a diverse group of businesspeople sitting in the boardroom during a meeting with their international colleagues via video chat

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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

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4.88K Followers
Wright's Research employs a disciplined, long-term approach rooted in contrarian thinking and unorthodox strategies. Our insights are grounded in fundamental analysis and the principles of value investing, allowing us to uncover overlooked opportunities and challenge prevailing market narratives. By prioritizing rational, forward-looking assessments, we aim to guide investors toward sustainable, value-driven decisions in an ever-evolving economic landscape.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ZM, GOOG, META, NVDA, ADBE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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