Scott Galloway is a marketing professor at the NYU Stern School of Business and the founder of business intelligence firm L2. Galloway stopped by Business Insider and discussed why he thinks WeWork and some other companies are overvalued. Following is a transcript of the video.
WeWork is arguably most overvalued company in the world. WeWork is now getting a valuation equivalent of $US550,000 per customer. So it’s hard to imagine how they can monetise consumers to the extent that warrants a $US550,000 evaluation per consumer. In some instances WeWork, if you do the maths, the floor that the WeWork building leases in a building is worth more than the building hosting the WeWork.
I bet if you look at a Regus or another co-working space you’d find that they’re worth kind of single-digit thousands. WeWork makes absolutely no sense that is the perfect example of kind of this frothy market of consensual hallucination between the company and its investors.
I would argue that Uber at this point is probably overvalued. Some of the controversy was not only bad for the brand but also demonstrated the substitutability of Uber, when people had a pretty easy time deleting the app and just firing up Lyft. And at 70 billion dollars you have to wonder if Uber is worth, you know, as much as Airbus and it probably isn’t. Snap incredibly overvalued, WeWork incredibly overvalued, and a company that’s off 70%, Twitter, is still massively overvalued. This is a stock that will be trading for between five and ten bucks within 6 to 12 months. Two and a half years ago when it was at 55 I said it would be below 10, and I was wrong it will be below five.
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