WeWork lost nearly 23 percent on the New York stock exchanges on Wednesday. Investors were shocked by the statement of the American office lessor that the company has doubts about the continued existence of the company.
The provider of shared workspaces referred to the ongoing losses and the flow of cancellations of the memberships of its office spaces.
The overall mood on Wall Street was cautious after the loss the day before. Investors are especially looking forward to the US inflation rate that is scheduled for Thursday. That number is significant for the interest rate policy of the Federal Reserve. If inflation cools sharply, the US central bank may decide not to raise interest rates further.
Shortly after the start of trading, the Dow Jones index was 0.1 percent lower at 35,283 points. The broad S&P 500 fell 0.2 percent to 4,492 points, and tech indicator Nasdaq lost 0.4 percent to 13,828 points.
Rivian Automotive gained 1.7 percent. The electric car manufacturer suffered fewer losses last quarter than analysts and investors feared. Turnover was also higher than expected. The company also raised its production forecast for this year and thinks it has enough cash to keep it running until 2025.
Lyft fell nearly 7 percent. The taxi service saw revenue per customer fall due to price cuts to boost demand and snatch customers away from its larger competitor Uber. Expectations for the current quarter were also disappointing.
Bumble lost more than 5 percent. The dating app booked less profit and turnover in the second quarter than experts had expected. Investors well received the results of the cloud communication company Twilio. That share rose 7 percent.
Penn Entertainment jumped more than 12 percent. The casino announced it would launch online gambling activities under the name ESPN Bet in conjunction with the sports channel ESPN this fall. Penn also sells the media company Barstool Sports back to founder David Portnoy.
Walt Disney, the owner of ESPN, won 1 percent. After the closing bell on the American stock exchange floors, the entertainment group releases its results.