Please select the second broker

Author: Alan LittleDate: 2020-09-10

Slack (WORK) pays for Q2 billings miss as shares crater 16%

Slack Technologies (WORK) was feeling the heat on Wednesday after shares plunged 16% in trading after the communication and collaboration platform posted a mixed Q2 report that prompted analysts to slash price targets.

Heading into the latest financial showing, bullish investors were expecting a blowout quarter on the back of the work-from-home trends that have been prevalent since the onset of the pandemic.

However, they will be underwhelmed, if not disappointed, by billings growth of 25% year over year, which fell short of the 33% growth expected by Wall Street.

There was good news in that the net loss from a year earlier was narrowed to $0.13 per share, just ahead of the -$0.14 consensus, and a rise in revenue from $145m to $215.9m, again better than forecast.

However, the billings miss proved a sticking point for analysts.

Barclays’ Raimo Lenschow said that Slack would be in the “penalty box” for investors as highly valued, fast-growing tech stocks should not fall short of billings estimates.

However, he did note: “In fairness, the company tried to communicate a tougher second-quarter billings setup by removing billings guidance last quarter and with intraquarter comments about a tough economy.”

Lenschow reduced his price target from $38 to $31.

Wedbush analyst Daniel Ives, who carries an underperforming rating, said that Slack is a poster child for remote working and that bulls will be shocked by the billings miss.

Piper Sandler’s Brent Bracelin and Morgan Stanley’s Keith Weiss also cut price targets to $36 and $27, respectively.

Looking ahead to fiscal Q3, Slack forecast an adjusted loss of $0.05-$0.06 per share and revenue of up to $225m.

Slack shares were trading 16% lower at $24.56 at 2pm ET on the New York Stock Exchange on Wednesday.

Slack (WORK) Stock

Scam Brokers, Broker Complaints

Are you aware of a scam broker or want to make a broker complaint?

We want our site users to find good brokers to trade through and to be warned off bad brokers. We encourage you to use our complaints tool to let us know about your experiences.

We have categorised the common complaints to make it easier for you and we have provided some guidance on what you may want to try before submitting a complaint, if our suggestions do not provide you with a resolution then by submitting a complaint, our team will attempt to take up your case with the relevant Broker and if needed, submit a formal report to the regulators.

We use the information you give us to decide if we want to continue to promote a broker on our site.

Your scam broker complaint not only helps you, it helps others and it helps us determine if we continue to support the broker.