WeWork Stock shares 28% increase in revenue and reduction in losses

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The stock is looking to break away from its record lows of early March

WeWork Inc (NYSE: US) is up 1.2% at $5.16 pre-opening following the release of its first-quarter results. The workspace provider shared a loss of 57 cents per share, which was thinner than the 71 cent loss analysts expected. This marks a leap forward, as this time last year, WeWork posted losses of $14.34 per share. Its revenue rose 28% for the quarter to $765 million, beating analysts’ expectations, as well as its earlier forecast.

The stock nearly fell to its all-time low of $4.50 in early March during yesterday’s session as long-term pressure on the 100-day moving average kept the stock capped. As of today, the stock is down 40.7% year-to-date and 56.7% year-over-year.

It’s also worth noting that the stock is about to go “oversold”, indicating a short-term bounce. This is according to the 14-day Relative Strength Index (RSI) of 31.

Short sellers have multiplied, with short interest rising 13.3% over the past two reporting periods. Now, the 47.23 million shares sold short represent 7.3% of the stock’s free float and would take more than two weeks to cover at the average daily WE trading pace.

Despite its recent lows, analysts remained optimistic. All three in the cover call WE a “Strong Buy.” Additionally, the 12-month consensus price target of $9.50 represents an 83% premium to current levels.

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