Slack: Fade The Rally

Slack rallied despite confirmation of decelerating revenue trends.
Microsoft appears to be stealing users at the margin.
A valuation of 8x FY22 revenues places the stock at only $17.50.
Despite disappointing guidanceSlack Technologies (WORK) rallied back on the day following earnings. The stock still trades near the lows following a hot IPO earlier this year as the market originally priced the collaboration service at irrational levels. The bounce places the stock in a position to rally off the lows, but the valuation remains far too rich to chase Slack here as my long-term investment thesis remains negative.
Read the full article on Seeking Alpha. 

Disclosure: No position. Please review the disclaimer page for more details. 

Comments

Popular posts from this blog

Camping World: Momentum Stinks

Qihoo 360: Extreme Value Or Value Trap?