Slack was up 10.3% Tuesday, to $23.13, after an analyst made a bullish call.
That is the single biggest move in the stock since its IPO last summer. Analyst’s average consensus is $27.32 which is still $4.01 above today’s price..
We call the BS
Slack shares have fallen 40% since being listed – why?
When the reality of Wall Street hit the cushioned and overhyped Silicon Valley valuations – real pricing kicked in.
Same happened to WeWork and their IPO – that never was.
According to Morningstar, $WORK has a short interest of 44.85M out of the 194.09M free float – representing 23.11%.
“Slack has become something of a default term that embraces reactions such as annoyance, irritation and peculiar skin rashes. My impression is that many employees — and I have had the desperate privilege of using Slack myself — find it an all-enveloping time-sink that can sometimes be as productive as shaving your eyebrows with a lawnmower.” – a quote by Chris Matyszczyk with which we agree.
5 reasons here for serious concern:
- Its revenue growth is slowing down
- It’s hugely unprofitable
- It’s burning through cash at a rapid rate
- Its corporate governance is not shareholder friendly
- Paid for conversions rates are dropping at an alarming rate
It seems Slack creates more work for you – than helping you do more work.
A great short, we see the stock at $5 in 2020. 🐻📉