Behind the popularity of new economy stocks

The rise of the new economy will continue to have a profound impact on the lives of investors, but putting money in such stocks may not yield the returns many hope for.

A WeWork location near New York City’s Times Square. WeWork was recently reported to be considering a rescue valuation of US$8 billion (S$10.9 billion) following a failed initial public offering, a whopping US$39 billion discount to its last valuation in
A WeWork location near New York City’s Times Square. WeWork was recently reported to be considering a rescue valuation of US$8 billion (S$10.9 billion) following a failed initial public offering, a whopping US$39 billion discount to its last valuation in a round invested into by SoftBank in January. PHOTO: NYTIMES
Grab has created waves in the region as an alternative transport provider connecting private car drivers with passengers, while Airbnb has created a large new market linking private residential landlords with short-term renters from around the world.
Grab has created waves in the region as an alternative transport provider connecting private car drivers with passengers, while Airbnb has created a large new market linking private residential landlords with short-term renters from around the world. PHOTOS: REUTERS
Grab has created waves in the region as an alternative transport provider connecting private car drivers with passengers, while Airbnb has created a large new market linking private residential landlords with short-term renters from around the world.
Grab has created waves in the region as an alternative transport provider connecting private car drivers with passengers, while Airbnb has created a large new market linking private residential landlords with short-term renters from around the world. PHOTOS: REUTERS

WeWork, Snap, Airbnb, Grab. Most of these names are familiar to us because of the impact they have had on our lives - from renting a swanky co-working space to taking fancy selfies, letting our apartments to holiday-goers and booking a ride-sharing car.

They have also been a major focus for investors around the world because of eye-popping valuations achieved in private markets, some in public markets, while many others are expected to come into the market soon.

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A version of this article appeared in the print edition of The Sunday Times on November 03, 2019, with the headline 'Behind the popularity of new economy stocks'. Print Edition | Subscribe