Slack Stock Has Plunged 33%. Here’s What Happened.

  • Now trading at just below $26 per share, Slack—which trades under the ticker symbol WORK—has fallen 33% from its original IPO listing price of $38.50.
  • Last Wednesday, Slack issued its first earnings report as a public company, with mixed results: Despite beating expectations on earnings and revenue, shares fell due to weak guidance and concerns over the company’s ability to compete with Microsoft’s rival work chat app in Office 365, Teams. 
  • Slack also forecast larger losses in the third quarter—leading to another sharp drop in shares, as investors remain anxious over the company’s slowing revenue growth and unclear path to profitability.
  • Since last week, several law firms have recently come forward to investigate whether Slack misled investors and failed to adequately disclose finances. 
  • Earlier this morning, a fourth firm announced it was investigating the company for violations of federal security laws, causing the stock to plunge more than 4%.

Full Story at Forbes.