Motley Fool Money WeWork Goes Bankrupt
Nov 7, 2023
In this engaging discussion, Bill Mann, an investment analyst at The Motley Fool, dives into the seismic shift caused by WeWork's Chapter 11 bankruptcy and its ripple effects on commercial real estate. He reflects on the importance of evaluating financial metrics as Uber celebrates its operating profit. Bill also shares insights from his travels in Africa, emphasizing the youthful demographics and rising commodity prices, providing a fresh perspective on global economic trends. Tune in for valuable lessons on investing and the state of American finances!
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Adjusted EBITDA Concerns
- Uber emphasizes adjusted EBITDA, which is not a standard accounting metric.
- Be cautious of "adjusted" figures, especially with EBITDA, advises Bill Mann.
Uber's Recurring Expenses
- Uber classifies lawsuits and regulatory issues as one-time expenses.
- For a global mobility and delivery company, these expenses seem recurring, raising concerns.
Stock-Based Compensation
- Stock-based compensation dilutes shareholder value as it represents a perpetual claim on earnings.
- While valuable for early-stage companies, excessive stock-based compensation can burden shareholders in mature businesses.