SLACK (NYSE:WORK) stock is not a bargain at the moment and all the stay-at-home glory seem to be going towards Zoom (NASDAQ:ZM) which almost doubled since March madness. Who ever bought WORK stock on March 16 is also a clear winner now, but what to do now when the single share is selling almost double that price? Is there any strength left in WORK?
At the beginning of the Corona crisis, everything happened very quickly: if you could you were allowed to send your employees home . Home office – previously only common in exceptional cases in many places – became everyday life for millions. One of the top profiteers of the new trend: Slack. The stock is not a bargain, but still very interesting.
In view of the easing in many areas of life, the question now increasingly arises: when are we actually going to go back to the office? And above all- how?
Tech giants like Apple and Google are not asking themselves this question: The employees no longer have to come to the company this year. Twitter even announced that employees could stay in the home office forever. It is very possible that the example will make a difference.
For companies like Slack, Corona could be the gateway to a new world. Instant messaging services are currently booming and should continue to be in high demand, because contact with colleagues in the home office should not be lost. However, e-mails are simply overlooked by some, phone calls are far too time-consuming.
According to CEO Stewart Butterfield, Slack recorded a 25% increase in users to 12.5 million during the crisis. Sales will jump 40 percent to $ 192 million in the first quarter (figures coming June 4), according to analysts.
Slack is not afraid of the strong competition and company leaders think that their product is completely different compared to Zoom or Microsoft products and there is a future for them.