- 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."