Despite disappointing guidance, Slack Technologies (WORK) rallied back on the day following earnings. The stock still trades near the lows following a hot IPO earlier this year as the market originally priced the collaboration service at irrational levels. The bounce places the stock in a position to rally off the lows, but the valuation remains far too rich to chase Slack here as my long-term investment thesis remains negative.
Image Source: Slack website
Deceleration Will Rule
While Slack surpassed analyst estimates and reported nearly 60% revenue growth in the quarter ending in