After a not-so-ideal debut by Uber Technologies Inc., whose shares closed on Monday 18% below Thursday’s IPO price, other tech unicorns like WeWork on the cusp of an IPO may not have it as easy as expected.
Traders are making it evident that IPOs by large technology companies with massive losses will in fact face criticisms, as seen with Lyft Inc. and Uber, and a large footprint is no longer enough.
“Two points make a line,” Triton Research Inc. wrote in a note to clients. “WeWork recently announced it had filed to go public later this year and we can now safely wonder if they will have the courage to go through with it.”
WeWork’s losses have not gone unnoticed and very much resemble their fellow technology unicorns, so whether the company goes forward with its initial public offering could still be in question.