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WeWork dips following announcement it will have to restate 2020, 2021 financials

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Yahoo Finance Live hosts look at WeWork's recent announcement that it will restate its 2020 and 2021 financials due to calculation errors.

Video transcript

BRIAN CHEUNG: We're going to shift gears now to discuss WeWork, the headlines around WeWork sending the stock down a little bit, down almost 5% right now on this Thursday session. And this is after the company said that it's going to have to restate financial results for 2020 and the first three quarters of 2021 because of calculations using the wrong public share count.

And got to be careful about this because a lot of the regulatory filing issues at play here are apparently attributed to the SPAC sponsor that helped WeWork go public, which is BowX Acquisition Corporation, which the date of the filing preceded when the actual SPAC transaction happened. So, Brian Sozzi, a lot of this, first of all, re-educating people on exactly how SPACs work, but also calling into question exactly the issues behind making sure you get your numbers right when you do file those SEC documents.

BRIAN SOZZI: And also, even, too, as a journalist, getting your headlines right. You know, initially, you saw WeWork shares down sharply on this report after the close on a headline that I would characterize as slightly misleading by another news outfit. I will not name that name. But that story has since been updated to correctly reflect, I think, what's in what WeWork came out last night. But still, you're seeing the stock down about 4 and 1/2% on this news.

And it really relates to BowX, the SPAC that WeWork merged with regarding the share count that was out there. But again, WeWork, it has to restate these financial results. You're seeing the stock under pressure as a result. A source familiar with the matter said WeWork still feels very strongly about their financial results and really noting this is more of a past issue than one moving forward. But let the market decide.

BRIAN CHEUNG: All right, well, we'll keep an eye on that developing story. Thanks so much.

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