Slack Stock Slumps Despite Stay-At-Home Surge

Slack Stock Slumps Despite Stay-At-Home Surge

almost 4 years ago2 mins

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The US market ended a wild week well – but messaging service Slacksaw its stock price fall 20% on Friday after it DMed investors a disappointing financial forecast. And cryptocurrencies didn’t fare much better… #️⃣

What does this mean?

Slack, once a Softbank-backedgrowth junkie, has – like many of the Japanese investor’s darlings – matured into a slower but still loss-making beast. And while Slack at least made it to the stock market, things have been downhill ever since.

Disappointing maiden results in September left investors Slack-jawed, while round two wasn't much better. And Slack’s third batch of quarterly earnings as a public company, while slightly stronger than expected in terms of revenue, included a clear message to the #stockmarket @channel: this quarter would be weaker than thought.

The US S&P 500 (blue) and Slack (red) over the past 12 months
The US S&P 500 (blue) and Slack (red) over the past 12 months

Investors appeared surprised: many may have expected Slack to benefit from the coronavirus outbreak forcing more people to work from home. But the company’s forecast warned that economic malaise would likely outweigh any benefits – and there may be other factors “at work” too… 😉

Why should I care?

Slack isn’t the only productivity software solution out there: Google and Facebook are among those vying to become the email killer, while Microsoft’s rival Teams service overtook Slack in terms of users last year – and now has more than twice as many. (Check out our dedicated Pack for more on Microsoft’s recent innovations.)

The response to COVID-19 will likely accelerate further development of the “distributed workforce” of tomorrow – including in areas like remote exams – and the tech titans with millions of existing users and sticky ecosystems may end up being the real winners. But then again, smaller players like Zoom Video Communications and Germany’s TeamViewer are seeing their stock prices rise even as the giants’ fall 🤨

Speaking of falls, there was more bad news for cryptocurrencies on Friday – with bitcoin at one stage touching its lowest price in a year. Time to wash your hands?

It’s been a rough few days for crypto investors (Source: CoinMarketCap)
It’s been a rough few days for crypto investors (Source: CoinMarketCap)
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