Companies looking to go public typically do their utmost to prevent the emergence of major red flags or de - emphasise any that might already exist . WeWork seems to be taking a contrary stance as it prepares to IPO seeking the same heady $ 47bn valuation attributed to it ’s most recent investment , according to Guru Focus ’ John Smith . Even before it revealed plans to go public , WeWork had an impressive collection of black marks to its name including a shaky business model , which has yet to prove its sustainability . WeWork’s reasoning was to shore up its cash balance in an effort to bolster investor confidence. Engle said that WeWork is inevitably poised for a dramatic fall from grace citing a preposterously high valuation and that investors should consider shorting the stock rather than investing in the IPO .
Companies looking to go public typically do their utmost to prevent the emergence of major red flags or de - emphasise any that might already exist . WeWork seems to be taking a contrary stance as it prepares to IPO seeking the same heady $ 47bn valuation attributed to it ’s most recent investment , according to Guru Focus ’ John Smith . Even before it revealed plans to go public , WeWork had an impressive collection of black marks to its name including a shaky business model , which has yet to prove its sustainability . Engle said that WeWork is inevitably poised for a dramatic fall from grace citing a preposterously high valuation and that investors should consider shorting the stock rather than investing in the IPO .