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Image: Shutterstock Slack Technologies, Inc. ( WORK – Free Report ) stock has surged nearly 40% since the end of January and barely slipped during the coronavirus selloff that sent the market into a correction at light speed.
The question is what’s going on with the previously struggling work-based communication tech firm, and should investors think about buying Slack stock amid calls for people to work from home as the coronavirus spreads?
Slack is a work communication platform that allows users to send messages, images, documents, and more to groups or individuals without email. The San Francisco-based firm lives under the broader umbrella of cloud-computing/customer relationship management and hopes it can attract more paying business clients through its apps and “robust” API.
The business, with a tagline of “one platform for your team and your work” is relatively straightforward, which is part of the problem. Wall Street is worried that Slack won’t be able to compete long-term and attract paid subscriptions in a work-place communication industry currently dominated by Microsoft ( MSFT – Free Report ) and Google ( GOOGL – Free Report ) .
But Slack has crushed our quarterly earnings estimates in the last two quarters. The firm also fully launched in the third quarter its new shared channels feature, which co-founder and CEO Stewart Butterfield called its “most exciting product release in collaboration since we first launched Slack.”
The company closed Q3 of its fiscal 2020 with 821 paid customers with recurring revenue above $100,000, up 67% from […]