Trade Alert: Betting Against A Bouncing Meme Stock
This one might be headed for bankruptcy.
Jared Leto as Adam Neumann in Apple TV’s “WeCrashed”.
An ~87% Rally On No News
One of the recent triumphs of TV casting was Apple TV getting charismatic rock star Jared Leto to play WeWork (WE 0.00%↑) founder Adam Neumann.
It was kind of meta that Apple (AAPL 0.00%↑), a company co-founded by Levantine Svengali, produced a show about another one.
Neumann had a clever idea, that young entrepreneurs missed the camaraderie of college, and opened shared workspaces with craft beer on tap and some of the other perks associated with tech start-ups. The goal was to get tech-like valuations for what was essentially an office leasing business, and WeWork had them for a time. Then it finally went public at a more modest valuation and its shares are down more than 98% since.
WeWork had a 1-for-40 reverse split earlier this month, and then it popped nearly 87% on Tuesday, non no news. So today I’m placing a couple of bearish bets on it.
Bearish Trade #1
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