Hedgeye CEO Keith McCullough is adding WeWork (WE) to the short side of Investing Ideas. Below is a brief note.
I watched the AppleTV series on this and decided it's a short...
Kidding. If you think about markets the way I do, you'll see the same Fractal Pattern here in WeWork (WE) as you do in Warby Parker (WRBY):
A) Bearish @Hedgeye TREND shorts that played out, big time...
B) Big time bear market bounces on #decelerating volume to lower-highs
C) High Short Interest stocks where the weakest hedgie hands cover last
Here's an excerpt from Rob Simone's REIT Pro Research product on the name:
| WE expects to hit Adj. EBITDA positive by the end of FY22 as we had initially modeled, the problems are that (1) revenues directionally are going the wrong way and (2) both credibility and confidence are essentially gone at this point heading into Quad 4. |
Sell the bounce so that you aren't selling a lot lower,
KM