Current Events > the WeWork IPO looks like it's going to be free money

(+) Yeah! (+)

i dont normally follow or care about the stock market but im getting tons of articles in my feed about WeWork and it looks like pretty much a sure thing if you short it.

$47bn valuation
$1.8bn revenue in 2018
900mil net income loss for the first half of this year
razor thin margins in general


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green butter
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- claims to know nothing about stocks
- talks about shorting
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FFVII_REMAKE posted...

- claims to know nothing about stocks
- talks about shorting

i dont know anything about stocks but the writing looks like it's on the wall here

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I'll be looking to buy puts on it for sure.

But so will everyone else..., So we'll see
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Aren't IPOs typically underpriced anyway?
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The IPO isn't even out yet and it's difficult to short a stock on it's initial offering. In order to short, you'd need to borrow it from your brokerage firm which means they would need to have an inventory of the stock. Upon early trading, the main entities that hold inventory are the underwriters, the retail investors and the institutional investors. Shares are sold at a discount to underwriters.

Underwriters aren't allowed to lend out shares within the first 30 days, and the retail and institutional investors will have a limited amount of shares they would lend out due to shares may not be completely transferred.

Generally best to wait 6 months.

so what happens if every other savvy investor also shorts?

doesnt it make the short moot?

dont you have to have people buying in for a short to ultimately work?
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