WeWork stock prices had a surprising surge, more than doubling in just two days, as reported by MarketWatch and 247wallst.com. This unexpected rally saw WeWork’s shares increase by nearly 87%.
The trading volume during this short period skyrocketed to 47.5 million shares, a stark contrast to the average of 2.4 million shares over the past month.
WeWork recently announced plans to renegotiate the majority of its global leases as it grapples to stay afloat. The company’s CEO David Tolley mentioned that this would lead to WeWork exiting “unfit and underperforming locations” and reinvesting in its strongest assets. This strategic shift was a response to the company’s Q2 results, which raised doubts about its ability to continue operations.
This has all led IWG, a major WeWork competitor, to assess the value of WeWork’s spaces worldwide. The company has recently taken over a WeWork space in West London, according to CoStar. IWG’s move is in line with the rising demand for flexible working spaces, especially outside central London.
Despite the recent stock surge, WeWork’s shares are still down by nearly 90% year-to-date. This is even after the company resorted to a 1-for-40 reverse stock split to prevent delisting from the New York Stock Exchange (NYSE). The challenges for WeWork began in 2019 — with its unsuccessful attempt to go public, revealing significant losses and potential conflicts of interest — and still continue as it attempts to stave off bankruptcy.
While WeWork’s recent stock surge might hint at a potential recovery, it’s more likely that it could be a temporary meme stock frenzy. Only time will tell if WeWork can successfully navigate its challenges and redefine its position in the evolving workspace industry.