WORK - 5 Metrics Behind Slack's Soaring Stock Price
As many companies and governments around the world are urging workers and citizens to stay at home amid the coronavirus outbreak, some companies -- and their stocks -- are taking a beating. But a lucky few are actually benefiting from this shift. Likely beneficiaries include video streaming, videoconferencing, and online collaboration companies. Unsurprisingly, shares of these businesses are rising as investors bet the coronavirus pandemic will accelerate adoption of these technologies.
Slack Technologies (NYSE: WORK), with its channel-based instant messaging platform, is one company likely to see a substantial boost from this work-from-home trend. Following the company's fourth-quarter report earlier this month, however, shares of the messaging platform initially fell. Investors were likely expecting more impressive guidance since the coronavirus outbreak was already resulting in travel restrictions and more virtual working -- two macro factors investors expected to be a boon for the company. But management noted at the time that it had opted to be conservative about its financial outlook given the uncertainty in the enterprise sector due to the outbreak.
Since this fourth-quarter update, however, much has changed. Indeed, Slack's CEO recently took to Twitter and shared some data on the company's recent mind-boggling growth during the coronavirus outbreak. Following its post-earnings sell-off, the stock has surged. Since March 16, Slack shares are up more than 65%.