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Jamie Adams
Aug 23 · 6 min read

Catch up with this week’s Five on Friday!

Photo by Con Karampelas on Unsplash

#PowerOfWe

Last week, WeWork unveiled its S-1 filing ahead of its planned IPO, a confusing report of a business with ballooning revenue and losses.

What does this mean?

What is going on over at WeWork? Financial filings last Wednesday revealed that the co-working company had quadrupled its revenue in 2 years to $1.82 billion, while also declaring an annual loss of $1.61 billion. WeWork’s public offering will be a test of the public’s patience towards quirky startup IPOs with a confident business model and leadership, yet still losing millions. As well as this, the company has some uncomfortable questions to answer regarding its chief executive Adam Neumann and his involvement in hundreds of millions of dollars worth of real-estate deals, personal loans with the firm and the large bonus he will receive for taking the company public. WeWork’s $47 billion valuation could be compared to the much smaller IWG which went public 20 years ago and filed for bankruptcy soon after. However, since then IWG have managed to turn things around and have been on the rise. Going public as early as September, WeWork will face a hostile start to public life, which is risky enough in the best of circumstances, but added to this the unanswered questions and distrust behind the company, and it could spell disaster.

Bet you didn’t know

MyWallSt operates a fortnightly podcast called Stock Club, and this week we are discussing ‘magic formulas’ for beating the market, companies who have passed their glory days, and of course, what is happening at WeWork?

#FaceWipe

Facebook has said that it is giving users the option to wipe their history, threatening its targeted ads business model.

What does this mean?

Facebook announced this week that it is planning to allow users to disconnect their account from all web and app history associated with the social media giant. Any such move could pose a serious threat to the important revenue stream Facebook receives from targeted advertisements. Facebook explained in a blog post that anyone who opts to clear their off-Facebook activity will not be sharing any information with Facebook, and thus cannot be targeted by ads later. This move comes after months of antitrust investigations and may well be a tactic to stay ahead of regulators in the U.S. who seek to crack down on Facebook’s ad targeting practices. The impact of this on Facebook’s business will depend on how many members will use the ‘Off-Facebook Activity’ tool which will be placed in the website’s settings. The feature will first be made available to people in Ireland, South Korea and Spain, followed by a gradual rollout.

Bet you didn’t know

Every minute of downtime outage costs Facebook approximately $106,700.

#FitbitInspires

Fitbit has launched a new health scheme in Singapore in order to revitalise its dwindling revenue.

What does this mean?

Fitbit announced this week that they had struck a deal with the government of Singapore which will allow it to provide fitness trackers to a potential market of hundreds of thousands. From September, residents of Singapore can sign up to Fitbit Inspire and receive a free Fitbit watch, while committing to a $10 per month subscription of the company’s premium health-guidance service. The deal suits both parties involved, as Singapore looks to reduce the cost of healthcare for its 5.6 million citizens, and Fitbit look to diversify into the service markets after falling behind to competitors Xiaomi and Apple in the wearables market. With a renewed, service-driven business model, Fitbit will look to once more become a leading figure in an industry which has become saturated with service-dependant-wearables.

Bet you didn’t know

At its peak in 2017, Fitbit accounted for 19.2% of wearables market-share in the world, but has since dropped below 10%.

#SolarFlares

It was revealed this week that Walmart is suing Tesla over solar panel fires at seven of its stores.

What does this mean?

U.S. retail giant Walmart is suing Elon Musk’s Tesla after the latter’s solar panels caught fire at seven Walmart stores. Tesla and Walmart have been partners in clean energy initiatives for several years, with over 240 Walmart stores operating with Tesla solar panel installations. As well as this, Walmart gave Tesla’s electric car business a commercial boost by pre-ordering at least 45 Tesla electric semi-trucks to add to its fleet in September last year. Walmart accused Tesla of breach of contract and gross negligence following the fires and is suing the company on these grounds, as well as asking for the panels to be removed from all stores. Losing a large client such as Walmart would be a major blow for Tesla’s solar business which it has been trying to revive as of late following poor showings in this year’s second quarter, where they sold a mere 29 megawatts of solar, a record low for the company who sold an average of 200 per quarter at its height in 2016.

Bet you didn’t know

Walmart has more employees worldwide — 2.2 million — than the population of Houston, Texas.

#AndFinally

A new saga in the Sony-Marvel relationship has emerged titled: Spiderman: Enter the Spidivorce! (We’ll let ourselves out). Fans of the web-slinger were up in arms this week as news emerged of the beloved heroes departure from the Marvel Cinematic Universe (MCU). With the latest installment becoming Sony’s highest-ever grossing film, it appears that Marvel and Sony disagreed on the financial split of future Spider-Man led movies forcing the two media giants to end their collaborative relationship. The future of Spider-Man in the MCU, which has received much praise from fans and critics alike, is now very uncertain indeed, and it remains to be seen what kind of financial impact this will have on Disney’s most profitable movie franchise. Spider-Man is certainly looking like he’ll be far from home for the foreseeable future.

What does this mean?

If no deal is reached between Sony and Marvel, then future MCU movies will have to move forward without their flagship character.

Bet you didn’t know

Between 2002–2019, there have been 4 different big-screen versions of Spiderman, 8 stand-alone movies, and an overall total of $6.3 billion in the box-office.

The Week In Numbers

$6 billion

is how much Apple announced they will spend on original content for Apple TV+.

$900 million

is how much GameStop have had wiped from their market cap in 2019 due to a continuing slump in revenue.

$533 billion

is how much analysts estimate Greenland would cost President Trump, if it were for sale.

The Takeaway

It’s a mixed bag of news all ‘round this week, so we’ll start with the (kinda) bad: WeWork’s parent company We Co. is planning to go public under a cloud of uncertainty following its earnings report, while Tesla and Walmart’s sustainable energy partnership may be under threat, with the retail giant suing Elon Musk’s flagship company. In some better news, Fitbit is moving forward with Singapore’s government to provide health services on their wearables to a potential target of 1 million residents of the Asian city, and Facebook is finally bowing to antitrust pressure and allowing users to permanently wipe their browser history. We refuse to comment further on the Spider-Man situation as we have chosen to pretend it isn’t really happening.


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MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in some of the companies mentioned above.

The MyWallSt Blog

Investing is for everyone, we show you how. MyWallSt is a multi-award winning company that helps you to become a confident and successful investor.

Jamie Adams

Written by

Jamie is our content marketer at MyWallSt. If he’s not chasing down the quirkiest market stories of the week, he’s usually writing about them.

The MyWallSt Blog

Investing is for everyone, we show you how. MyWallSt is a multi-award winning company that helps you to become a confident and successful investor.

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