Slack: Wheels Just Fell Off
Slack fell hard due to revenue growth expectations failing to meet expectations.
The company is facing a period of decelerating revenue growth that always hits high multiple stocks very hard.
A valuation of 8x FY22 revenues places the stock at only $17.50.
By all accounts, Slack Technologies (WORK) reported a solid FQ2 for the first quarterly report following their hot IPO back in June. The stock was already down substantially from the highs above $40, but the IPO rally was so outrageous that investors should expect the IPO pricing at $26 is broken. My original research was bearish on the stock following the hot IPO, and the view hasn't changed much now.
Read the full article on Seeking Alpha.
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