Investment Thesis
Slack (WORK) came out with beats along the way, but notwithstanding much oscillation in the share price after hours, investors' reaction ultimately remained substantially unchanged.
Yes, there were beats. Yes, the company reaffirms its trajectory. But an overpriced stock needs more than just positive affirmation; it needed positive surprises - and there weren't any.
I contend that investors will struggle to find a positive return here.
(Source)
Guidance Points to Slowing Down
Dissecting Slack's Q3 2020 results by looking ahead first:
Source: author's calculations
Slack started Q1 2020 revenue