- Andrew Yang, the 2020 Democratic presidential hopeful, called out WeWork in a tweet on Wednesday.
- He called the company’s $US47 billion valuation “utterly ridiculous,” agreeing with New York University professor Scott Galloway’s piece on Business Insider.
- WeWork has come under fire for multiple bizarre points uncovered in its S-1 filing ahead of its initial public offering.
- Read more on Markets Insider.
The WeWork backlash continues.
Andrew Yang, the 2020 presidential hopeful most popular for proposing universal income of $US1,000 per month, tweeted his support for NYU Professor Scott Galloway’s piece on Business Insider calling WeWork “WeWTF” on Wednesday.
“For what it’s worth I agree with @profgalloway that WeWork’s valuation is utterly ridiculous,” Yang tweeted. “If they are a tech company so is UPS. UPS trades for 1.4x revenue not 26x.”
WeWork currently carries a valuation of $US47 billion, and says it expects revenue to be $US3 billion this year. Galloway poked holes in the valuation in his piece, calling it an illusion and saying “any equity analyst who endorses this stock above a $US10 billion valuation is lying, stupid, or both.”
In his tweet, Yang pointed out that the United Parcel Service trades at about 1.4 times its revenue. If WeWork is considered a tech company, Yang wrote, then UPS should be as well.
Even within the world of tech, Galloway points out that WeWork’s valuation is extremely high and – in his view – unfounded. Amazon, another tech-adjacent e-commerce company, trades at about four times its revenue, he wrote.
WeWork has been in the spotlight recently after filing its preliminary paperwork for an upcoming initial public offering. Analysts have called the company cultish, called out its extreme $US1.6 billion in losses, and said that it operates more like a real estate company than a tech company.