WeWork Executes 1-for-40 Reverse Stock Split to Maintain NYSE Listing and Avoid Delisting

WeWork's stock price has plummeted since its IPO in 2019, triggering noncompliance warnings from the NYSE regarding its $1 per share minimum price.
To boost its stock price above $1, WeWork is implementing a 1-for-40 reverse stock split, which will convert every 40 shares into 1 share.
The reverse stock split will take effect on September 1st, with the new share price expected to open around $5 on September 5th.
WeWork faces financial struggles due to membership declines, losses, and cash burn, with its market cap falling from $47 billion to around $336 million.
While the split may help WeWork meet the NYSE's listing requirements, it does not resolve the company's underlying business and financial challenges.