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SoftBank will win WeWork bet - Bernstein

Dec. 06, 2019 3:02 PM ETSFTBF, SFTBY, WEWKQBy: Brandy Betz, SA News Editor23 Comments
  • Bernstein thinks WeWork's (WE) "valuation is justified if you believe in the long-term, 'office space' will be a managed service outsourced to professionals -- and that WeWork will be the leading global player."
  • The group of analysts says investors are "fixated" on the heavy losses related to rapid expansion.
  • Bernstein compares WeWork to Starbucks and says WE could experience similar brand effects and economy of scale.
  • The analysts acknowledge the inherent risks with a business model that's sensitive to capacity utilization but believes those risks can be managed.
  • As for SoftBank's (OTCPK:SFTBF,OTCPK:SFTBY) bailout of WeWork, Bernstein suspects "SoftBank will have the last laugh when they bring the company back to market in a few years -- bigger and profitable."

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