Slack is a key player in collaboration software, and has seen growth with Salesforce's acquisition. Investing in Slack offers potential returns as it evolves. Online trading platforms simplify buying shares in such innovative companies. Stay updated on market trends to make the most of this investment opportunity.
Ticker | Company | ±% | Price | Invest | ||
---|---|---|---|---|---|---|
CRM | Salesforce | 0.5% | $286.00 | Buy stock |
Step 1: Pick a Broker
Before you can buy Slack stock, you must have an account with a reputable stockbroker. Knowing your needs before you choose a broker will make your decision much easier.
How you buy Slack stock is just as important as where you trade, so make sure you pick the right broker, whether it’s Webull (for beginners) or Interactive Brokers (for more experienced traders).
Step 2: Practice Trading
If your objective in buying Slack stock is for investment purposes and nothing more, then all you have to know to place an order is the price you’d like to pay and the amount of stock you want to acquire at that price. If you’re unsure of the price, place a market order instead.
On the other hand, if you want to watch the market to get familiar with how Slack stock trades, especially since the stock has never traded publicly on an exchange, consider opening a virtual or demo account with at least one of the brokers you’re considering.
A virtual trading account works just like a live account except that you don’t have to risk any funds when you trade. Ideally, you can open several accounts with different brokers to evaluate their platforms and services. Regardless of whether you buy Slack or any other stock, using a demo account to practice before you begin live trading can generally benefit you.
Step 3: Fund Your Account
Once you’ve practiced trading in a demo account and have built enough confidence in your trading strategy and ability to operate the platform, you can fund an account with the broker you’ve chosen. You can pick a different broker than the one where you opened a demo account, though you might be better off just funding your account with the same broker if its services seem to meet your needs.
Step 4: Buy Salesforce Stock
Funded an account with a reputable broker? You can now place a market order at the opening. This will let you obtain the stock at its opening price, which could be quite high. You could instead watch the price action at the stock’s opening and place a limit order bid at a lower price after the initial flurry of activity has passed.
You may want to place a good ‘til canceled or GTC order at a low price and wait to see if the order is filled if you’re planning on buying Slack stock for investment purposes. Once executed, you could protect your position by placing a stop-loss order or place trailing stop orders if the stock starts rallying.
Slack: Company and Stock History
Slack was originally used as a tool in the development of an online game called Glitch. According to the company, “Slack” means a “Searchable Log of All Conversation and Knowledge.”
Slack is a cloud-based collection of groupware (also known as collaboration software) and other online services. Slack’s groupware is designed as a collaboration hub to assist people involved in a common job or project to attain their goals. The company who owns Slack, Salesforce.com is an American software as a service (SaaS) provider best known for offering a complete suite of customer management and enterprise application tools. To find out more about Salesforce please visit Salesforce.com stock history.
Slack has seen enormous growth in its user base since its online release in August 2013. The company currently has 10 million users in 150 countries, including 600,000 organizations, 500,000 developers and 95,000 paying customers who actively use Slack on a daily basis. Slack users generate over one billion messages on the platform every week.
The Slack website and interface can be used immediately to connect to other Slack users directly or in specific work groups, and the basic service is free. Anyone who has used Slack can attest to its ease of use and the efficiency it provides when communicating with other people via text or voice.
Future Outlook for Slack
Slack has ambitious plans for the future, despite the fact that the company is still losing money. The firm’s growth in sales to corporate clients has quadrupled since 2016, rising from 25% of total revenue to its current level of 43%. Revenues have also increased by double digits for the last 3 years.
Slack reported a Generally Accepted Accounting Principles (GAAP) first-quarter net loss of -$31.8 million, or -$0.26 per share. On a non-GAAP basis, Slack reported a smaller net loss of -$0.23 per share.
Furthermore, revenue for the quarter came in at $134.8 million and rose by +67% year on year. Billings came to a total of $149.6 million, showing an increase of +47% year on year.
Slack also reported that its net loss for the fiscal year ended on January 31 was -$140.7 million, higher than the loss of -$108.9 million seen the previous year. Slack still reported annual revenue of $400.6 million, which was almost double the amount from the previous year.
Slack’s revenue guidance for its second quarter of $139-$141 million would show an increase of 51%-53% year on year, if actualized. For the full fiscal year 2020, Slack expects revenue of $590 to $600 million and a non-GAAP loss of -$0.44 to -$0.41 per share with an operating loss of $192 to $182 million.
According to the company’s S-1 filing with the Securities and Exchange Commission (SEC), Slack’s registered shareholders will resell 118,429,640 shares of the company’s existing Class A common stock that they currently hold.
Slack reported that 181 million shares of its Class A stock, with the omission of restricted stock, were held by officers and employees, while 324 million Class B shares were held by registered stockholders.
In the chart below, you can see Slack’s annual recurring revenue (ARR) of each cohort (groups of people) over five different annual time periods. Each cohort represents paid customers who made their first purchase from Slack in the given fiscal year.
Why You Might Want to Buy It
Slack’s Messaging App
Slack’s messaging app continues to gain ground and has replaced email as the best way to communicate for many companies. Slack could be the new standard messaging platform worldwide, which could significantly improve revenues and earnings depending on how the company leverages its position.
Enterprise Work Platform
In addition to its potential for becoming the world’s standard messaging platform, Slack could also become the global standard for collaborative and work-related groupware. The company already has a substantial lead in the field, which could be taken to the next level, as the company’s notable growth in sales to corporate clients is already evident.
No Minimum Holding Period
Unlike an IPO, in which initial participants typically have a lock-out period of at least 30 days during which they cannot sell their newly issued stock, in a DPO, buyers can sell their shares right after they buy them.
Considerations Before You Buy
To invest in Slack Technologies, Inc., now part of Salesforce, consider factors like its position in the collaboration software market and the economy. Look at Slack's financial performance, user growth, competition, and Salesforce's strategy. Understand how economic trends and tech industry changes can affect Slack's growth. Analyze these factors to make a smart investment decision in Slack stock.
Increased Competition
A slew of companies offering essentially the same services have recently begun eating away at Slack’s market share. Options such as Alphabet’s Google Hangouts, Facebook’s Workplace, Telegram, Microsoft Teams, Quip, Monday and Chatter are just a few of these competitors.
Market Trends for Collaboration Software
The collaboration software market is competitive. Microsoft Teams, Zoom, and Google Workspace are top players. Features like task management and video conferencing affect Slack. Innovation is key for Slack to remain relevant. It must keep evolving its platform. Failure to innovate could lead to losing market share. Investors have challenges and opportunities with these trends. Competition may affect Slack's growth but also encourage innovation. Monitoring Slack's initiatives against rivals is important for assessing its long-term value.
Risk and Challenges
Slack competes with Microsoft Teams and Zoom in team collaboration tools. These competitors have large market shares and integrated ecosystems. This could draw customers away from Slack. Slack's subscription revenue model makes it vulnerable to losing customers. Market changes can impact Slack's stock performance. Investors should be cautious and consider competition and market conditions. Strategic positioning and customer loyalty are important for Slack's survival.
Acquired by Salesforce.com in 2021
It's important to note that cloud computing giant Salesforce successfully completed an acquisition of Slack for $27.7 Billion.
Salesforce completed its acquisition of Slack last 2021. This strategic merger combines Salesforce's leadership in customer relationship management (CRM) with Slack's dynamic digital communication platform, creating a seamless solution that enhances connectivity among employees and customers alike.
Salesforce has integrated Slack into its ecosystem to create a digital HQ. This helps organizations collaborate better and streamline workflows. The merger improves internal communication and customer engagement. Salesforce is committed to empowering businesses in a digital-first environment. The integration of Salesforce and Slack is innovative for communication and collaboration. This paves the way for more efficient and connected workplaces. They are leading the way in redefining enterprise interactions in the digital transformation era.
Should You Buy Slack Stock?
The results of a DPO versus an IPO have significantly different impacts on both the company and its prospective investors. For starters, a DPO eliminates the middlemen, or the investment bankers that normally sell newly-issued shares to the investing public after first purchasing the shares from the company.
A stock issue underwritten like that generally costs the company issuing shares as much as $100 million in underwriting fees, which are typically paid for with the company’s newly issued stock and dilutes its value. In contrast, Slack’s DPO does not involve raising capital through a new issue of stock but instead, reselling some Class A stock already owned by the company’s registered shareholders.
You’re probably best off waiting until the initial excitement has passed and market volatility cools off before putting in a bid. This is because most new tech stocks tend to gap higher when they first trade but can later stage a pullback.
The stock’s initial performance could also give a strong indication of whether WORK stock would make a good long-term investment or a decent stock to trade using short term strategies.
Want to learn more about trading stocks? Check out Benzinga's guides to the best online brokerages for beginners, how to trade stocks for free and the best online day trading courses.
Frequently Asked Questions
Does Slack have stock?
Yes, Slack still has stock following its acquisition by Salesforce in July 2021. Prior Slack shareholders received a mix of cash and Salesforce stock. Now, Slack operates under Salesforce, so former Slack shares are represented as Salesforce stock.
What is the stock name for Slack?
The stock name for Slack is WORK.
Can I invest in Slack?
Yes, you can invest in Slack by buying shares listed on the NYSE under the ticker “WORK.” Purchase shares through a brokerage or online trading platform. Remember to research thoroughly and align investments with your goals.
About Jay and Julie Hawk
About Julie:
Julie Hawk earned her honors undergraduate degree from the University of Michigan before pursuing post-graduate scientific research at Cambridge University. She then started work in the private sector as a business systems analyst for a major investment bank, where she qualified as a Series 7 Registered Representative and received comprehensive training in various financial products. Further honing her skills, she attended the prestigious O’Connell and Piper options training course in Chicago, mastering professional option risk management techniques.
Julie then transitioned into the role of a professional Interbank forex trader, currency derivative risk manager and technical analyst, ascending to the position of vice president over a 12-year career in the financial markets. Julie’s illustrious banking career spanned working for major international banks in New York City, London, and San Francisco, where she served as an Interbank dealer, technical analyst, derivative specialist and risk manager. Her responsibilities included educating, devising customized foreign exchange hedging and risk-taking strategies, and overseeing large-scale transactions for esteemed banking clients, including corporations, fund managers and high-net-worth individuals. As part of her responsibilities, Julie managed substantial portfolios of forex options, spot, and futures positions as a currency options risk manager, earning recognition for executing innovative and highly profitable forex derivative transactions. Julie also spearheaded educational conferences on currency derivatives.
During her banking career, Julie attained world-class expertise in technical analysis, including Elliott Wave Theory, and pioneered research into automated trading and trading signal systems. An active member of the San Francisco Writers’ Guild, Julie also authored trade strategies, educational material, market commentary, newsletters, reports, articles, and press releases. She became a sought-after market expert who was frequently interviewed by financial magazines and news wires such as REUTERS.
Following her retirement from the banking sector, she dedicated 15 years to online forex trading, mentoring and freelance writing for TheFXperts, which she co-founded with her husband Jay. Julie is the co-author of “Forex Trading: A Beginner’s Guide” and “Technical Analysis for Financial Markets Traders,” in addition to five other books on financial markets trading and personal finance. She now focuses on writing articles on financial markets for platforms like Benzinga, although she continues to trade forex online and mentor fellow traders as part of TheFXperts’ financial team.
About Jay:
Jay Hawk grew up in Chicago and Mexico City where he became bilingual in English and Spanish. After taking formal training as a classical guitarist at prestigious music conservatories in Europe, Jay then embarked on a remarkable journey into the financial markets, cultivating his notable expertise through hands-on experience that began on the Midwest Stock Exchange.
His financial career progressed as he started actively participating in various exchange floor trading activities in the Chicago futures and options pits, where he worked his way up the ladder, serving as a clerk, trader, broker, investor and fund manager. Jay then ran a retail stock brokerage desk and managed funds for large institutional investors, leveraging his discretionary trading skills to yield profitable results for clients.
This ultimately led to Jay holding exchange seats and operating as a market maker on options exchanges in Chicago and San Francisco, initially on the Chicago Board Options Exchange. Jay also played a significant role in the Chicago Mercantile Exchange’s evolution, where he contributed to launching and actively trading the first listed currency futures options. After transitioning to the West Coast, Jay then held a seat and ventured into trading stock options and their underlying stocks on the Pacific Options Exchange.
Jay’s comprehensive understanding of fundamental economic and corporate analysis continues to inform his trading and investment activities and has led to his subsequent success as an expert financial writer. Together with his wife Julie, he co-authored “Stock Trading: A Beginner’s Guide”, “Commodity Trading: A Beginner’s Guide” and “Fundamental Analysis for Financial Markets Traders,” among their published books focusing on financial markets trading, market analysis, and personal finance.
As an integral member of TheFXperts’ team, Jay now excels in trading forex online for his personal account, mentoring aspiring traders and writing for financial platforms like Benzinga where he specializes in covering topics related to the stock and commodity markets, as well as investing, trading and reviewing online brokers.