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WeWork’s Shares Up 87% on Tuesday, Post Biggest 1-Day Gain

Tim Fries

Published: September 13, 2023 6:55 am

Last Updated: September 13, 2023 9:02 am

Shares of WeWork witnessed an unexpected pump on Tuesday, soaring by nearly 87% in afternoon trading as volume jumped to over 47 million shares. The jump comes amid a challenging period for the company, which warned of a potential collapse last month.

WeWork’s Stock Sees Biggest-Ever 1-Day Gain

Coworking space provider WeWork saw its stock price skyrocket 87% in afternoon trading on Tuesday on substantial volume, making it the best-performing equity on major US exchanges. The company’s stock has more than doubled since Monday, surging from $2.70 to $5.74 at the time of publication.

While no specific event or development fueled the massive rally, WeWork’s stock appears to be rocketing on heavy trading volume, which has jumped to 47.5 million shares. The stock’s full-day average over the past month was just 2.4 million shares. The daily volume on Tuesday was over nineteen times last month’s average.

The spike, representing the most substantial one-day gain since the company went public in October 2021, offered a much-needed boost for the stock, which took a heavy beating in 2023.

WeWork’s Shares Still Down 90% Year-to-Date as Challenges Persist

Last month, WeWork announced it would proceed with a 1-for-40 reverse stock split of its outstanding shares to save itself from getting delisted from the New York Stock Exchange. Even after this week’s surge, WeWork’s shares remain nearly 90% down year-to-date, placing the company on the verge of a collapse.

The firm’s endeavors to remain listed at the NYSE came after the company announced earlier this month that it had “substantial doubts” about its ability to keep afloat. Once valued at $47 billion, WeWork never wholly rebounded from its unsuccessful attempt to go public in 2019.

This period revealed colossal losses and several potential conflicts of interest between the company, co-founder, and ex-CEO Adam Neumann. The challenges continued throughout 2023 as WeWork grappled with mounting costs, cash burn, and high membership turnover.

The New York-based firm posted a net loss of $397 million in Q2. As a result, WeWork’s management recently formulated a turnaround plan to improve the company’s financial health, stating that its ability to continue operating would be “contingent upon successful execution” of that scheme.

Meanwhile, WeWork’s recent share price surge amidst lingering doubts about its future viability raises the question of whether this is another meme stock frenzy moment reminiscent of a similar scenario seen in 2021.

This article originally appeared on The Tokenist