|Some of the operating strategies under CEO Tidjane Thiam are now working effectively|
JPMorgan Chase, Goldman Sachs and other big investment banks are suffering mild blows after the sudden cancelation of the vaunted We Work IPO, the glorious offering of new stock that would seize headlines in late 2019. Big banks prepared to provide debt financing (up to $6 billion), while arranging an IPO valued above $40 billion.
But a September equity market couldn't digest it and questioned the assessed value of the company and predicted the company wouldn't be profitable at all for many years to come. The once $60 billion company was reduced to $40 billion to $20 billion and now to questionable, uncertain value. Some negative observers even wonder if the company can remain solvent in a few years (although cash received from the new IPO was supposed to help it remain viable in the short term).
The IPO was put back on the shelf, while the market hinted that venture-capital-backed new companies need to do a better job about projecting when they will turn billions in losses to millions in gains.