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How to Buy Slack Stock

Want to buy Slack stock to get in on this productivity company’s rise? This guide will show you how to do it.
michaelgraw
Author: michaelgraw
Last Updated: May 19, 2020

Slack has been a household and office name for several years now. The company makes one of the most popular messaging and productivity platforms on the market. In fact, it’s been able to consistently compete with offerings from the likes of Microsoft and Google.

Since Slack debuted on public markets in 2019, the stock hasn’t fared all that well, but the coronavirus crisis has breathed new life into this remote work-friendly platform, and Slack’s stock could be poised to rise higher. If you think this is just the beginning of a bright future for the company, now may be the perfect time to buy Slack stock.

In this guide, we’ll cover everything you need to know to purchase Slack shares. We’ll highlight three of the best brokerages you can use for the job, plus explore the bulls’ case for buying Slack now.

On this Page:

    How to Buy Slack Stock in 3 Quick Steps

    Want to buy Slack stock before the price has a chance to jump another step higher? These are the three steps you need to take to get Slack shares into your portfolio.

    Step 1: Create a Trading Account

    eToro broker to buy Berkshire Hathaway Stock

    Make sure the broker you choose offers trading for NASDAQ stocks.

    Step 2: Add Funds

    Add funds to your trading account. Most brokers accept bank transfer, credit, or debit.

    Step 3: Buy Slack Stock

    Search for ‘Slack’ or ‘WORK,’ choose how many shares you want, and click ‘Buy.’

    Where to Buy Slack Stock

    In order to buy Slack stock, you’ll need a trading account at a broker that offers shares of this company. Thankfully, since Slack is traded on the popular NASDAQ exchange, just about any brokerage that offers stock trading on US markets will let you buy and sell this company.

    Still, it’s worthwhile to get the best brokerage for the job. Let’s take a closer look at our three favorite brokers for buying Slack stock.

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    Detailed provider overview

    1. eToro - Best for Researching Stocks

    eToro is one of our favorite platforms for buying stocks like Slack. This broker goes beyond just trading to offer a full-fledged social network. You can follow other investors on eToro, start conversations about a trade, or join discussion boards for individual stocks. Even better, you can diversify your holdings with just a few clicks by copying other traders’ entire portfolios.

    Importantly, eToro gives you access to more than 800 stocks on major exchanges across the world. You can invest in not just Slack stock, but also any other hot stocks that are taking off in response to recent news. Plus, while eToro lets you own stock shares outright, you can still trade with leverage up to 30:1.

    Just be sure to watch out for extra fees at eToro. The platform doesn’t charge trade commissions and it keeps spreads relatively low across the assets on offer. But, eToro does charge withdrawal fees and inactivity fees that can add up over time.

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    • Social Network: Start discussions with other traders
    • Global Access: Buy stocks from any major exchange
    • Leverage: Trade stocks on margin up to 30:1
    • Fees: Charges withdrawal and inactivity fees
    • Limited Charts: Do not include advanced technical studies
    75% of investors lose money when trading CFDs.

    2. Plus500 - Trade Slack Stock through CFDs

    Unlike a lot of traditional stock brokers, you don’t own stock shares outright when you trade with Plus500. Instead, this platform allows you to trade contracts for differences (CFDs), which are derivatives that expose you to the price of individual shares.

    CFDs are advantageous because you can trade with leverage, up to 20:1 in the case of Plus500, and you have the option to bet that a stock’s share price will drop rather than keep rising. While you’re not eligible for dividends when trading CFDs, this shouldn’t be a huge issue for investing in Slack stock. Slack and most of its tech peers have never paid a dividend and aren’t likely to anytime soon.

    Plus500 has a few other advantages going for it, too. The platform offers access to hundreds of stocks around the globe and keeps its spreads tighter than most other brokers we’ve seen. Plus500 also offers beginner-friendly charts and price alerts so you never miss a trading opportunity. Just beware that the technical charting capabilities are somewhat limited as you get deeper into investing.

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    • Trade CFDs: Use leverage and short stocks
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    • No Dividends: Cannot earn dividends when trading CFDs
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    3. StashApp - Best for Long-term Investing

    If Slack is just the start of your new long-term investment portfolio, check out StashApp. This US-based broker is built around helping traders consistently move money into an investment account. That means you can invest in stocks and save for retirement without a ton of effort.

    To help, StashApp lets you automatically schedule transfers from your bank account to your investment account. If you make purchases with a debit card, the broker will also round your transactions up to the nearest dollar and invest your spare change for you. StashApp enables you to buy fractional shares of stocks, so you can invest that spare change just one dollar at a time.

    StashApp offers access to the vast majority of US stocks, bonds, and ETFs. But, bear in mind that you won’t be able to diversify your portfolio with forex or commodity trading in the future with this brokerage. In addition, StashApp is surprisingly light on research and analysis tools and doesn’t include any technical studies.

    Our Rating

    • Consistent Investment: Schedule transfers to your trading account
    • Invest Spare Change: Automatically rollover spare funds for investment
    • Bonds and ETFs: Invest in US stocks, bonds, and ETFs
    • Limited Asset Variety: Cannot trade forex or commodities
    • Very Basic Charts: No technical analysis or indicators

    How to Buy Slack Stock from eToro

    Ready to buy Slack stock but don’t know exactly how to navigate your new trading account? We’ll walk you through the process at eToro, our favorite online brokerage. We especially like using eToro because it has a low minimum deposit and makes it easy to start trading in just a few minutes.

    Opted for a different broker? Don’t worry. The steps we outline below are similar between most stock trading platforms.

    Step 1: Search for Slack (WORK) Stock

    eToro has hundreds of stocks available for trading. To find Slack shares, enter ‘Slack’ or ‘WORK’ (the company’s ticker symbol) in the search box at the top of the page.

    Step 2: Click on ‘Trade’

    Click the ‘Trade’ button to be taken to the order form for Slack stock.

    Step 3: Set Up Order and Buy Slack Stock

    You should now see an order form that you’ll need to fill out. This order form tells your broker how much Slack stock you want to buy, how much you’re willing to pay for it, and whether you want to automatically sell your shares at any point.

    These options are important, so let’s take an in-depth look at what they mean:

    • Set Rate: The rate is the price you’ll pay for Slack stock. If you leave it as ‘At Market,’ your broker will buy the stock at the current market price. Alternatively, you can specify a specific price you’re willing to pay for Slack stock. In that case, your purchase will only be executed if the share price rises or falls.
    • Amount: This specifies how many shares of Slack you want to buy. By default, it’s in dollars because eToro enables you to buy fractional shares. But, if you want to purchase whole shares, click the ‘Rate’ button and you can enter your purchase amount in shares.
    • Stop Loss: Stop losses are extremely important when trading. This is a price below the current market price at which your broker will automatically sell your Slack stock. Don’t set this too close to the current market price, but don’t set it too far below, either. You can’t lose more than your stop loss, so it’s an important protection against a bad trade.
    • Take Profit: The take-profit level is a price above the current market price at which your broker will automatically sell your stock. Only set this if you want to make a quick profit from Slack stock rather than hold it for years to come.

    Click ‘Buy’ to complete your trade.

    Why Invest in Slack?

    Slack stock has seen nothing but hard times since the company first IPO’d in June of 2019. But, the company has rebounded quickly from a sharp sell-off in response to the coronavirus crisis and is now sitting at a higher price level than it did for most of last year.

    So, is now the right time to buy Slack stock? We think so, based on three key pieces of evidence:

    Note: Always conduct your own investment research in addition to considering our advice. You’re responsible for your money and should be informed about what you’re investing in.

    Slack is on a Growth Streak

    Slack has been growing steadily for several years now and the company is planning to continue at full steam. Slack expanded its revenue by 57% in the first quarter of 2020. While you might think there was a catastrophe from seeing the mass sell-off in mid-March, in reality, the company only barely missed earnings expectations. Guidance for the rest of the year looks good, too, even before accounting for potential growth as remote work takes off.

    Importantly, Slack has been able to capitalize on large customers. The number of its clients spending more than $100,000 each year rose 55% from 2019 and have made up an increasingly large share of its revenue.

    Even better, this is stable revenue. Slack recently reported a 132% retention rate, meaning that it’s not just keeping existing customers, but also encouraging them to spend more.

    Slack Can Take Advantage of Remote Work

    While Slack works well for in-office communications, it caters equally well to remote productivity. The software offers phone and video calling, plus integrations with a variety of cloud storage platforms. Well it’s no Zoom when it comes to video meetings, Slack can more than hold its own in this regard and offers a much wider suite of features.

    Thanks to that, Slack stands to benefit from the coronavirus pandemic. Many businesses large and small are turning to remote work for the first time and exploring software options to help ease the transition. Slack is well-positioned to get that extra business and to keep it in the future, especially if remote work continues after the crisis as many analysts predict.

    So, expect Slack to keep cranking up revenue as the company slurps up new remote working customers.

    Slack is Still Trading at a Discount

    Right now, Slack is trading at around 11 times annual sales. That may sound high to conservative investors, but in the tech world, it’s something of a bargain. Most high-growth companies trade closer to 15 times sales.

    In addition, Slack still hasn’t broken back above the high price it reached in its first few days of trading, at nearly $40 per share. That’s an important milestone for the company’s stock. Once it breaks through resistance at that price level, Slack’s stock price could be poised for a significant step higher.

    About Slack Stock

    Slack, a reverse acronym for ‘Searchable Log of All Conversation and Knowledge,’ was first introduced as a messaging platform in 2013. The software had been developed by Tiny Speck initially as an internal communication tool, but founder Stewart Butterfield saw the program’s utility for other companies and remote workers.

    After years of building out the platform’s messaging features and integrations, Slack decided to go public in June 2019. The company IPO’d on the NASDAQ exchange at a share price of $26, and it quickly shot up to almost $40 per share—a valuation of over $21 billion at the high-water mark.

    Since then, the price of Slack shares slowly declined and the stock actually spent much of 2019 below its IPO price. After a brief, sharp dip in March 2019 in response to an earnings report, Slack shares are currently trading right around the $26 IPO price level.

    Should You Buy Slack Stock?

    Analysts are mixed about whether Slack is a worthwhile buy. Some firms are going all-in on Slack on the belief that it’s an undervalued tech company with a huge growth potential. Others look at the fact that Slack isn’t yet profitable and its recent earnings miss as a warning sign that this company isn’t ready for a price surge just yet.

    There’s no way to accurately predict the future for Slack or its stock price, so you’ll need to think carefully about this company’s financial history and how its business model fits into the global economy going forward. Given that Slack is bringing on new clients and is poised to take even more advantage of the shift to remote work, we think that this company is just at the beginning of a long and sustained upward momentum.

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    FAQs

    What is Slack’s stock ticker?

    Slack is listed on the NASDAQ stock exchange as ‘WORK.’

    What countries is Slack available in?

    Slack reports daily active users in more than 150 countries, covering six continents. Most of Slack’s user base is concentrated in North America and Europe.

    Does Slack pay dividends?

    Slack does not pay dividends. In fact, since the company is not yet profitable, it actually offers negative earnings per share. Don’t expect Slack to pay dividends even after it’s profitable, as few of its tech peers pay out profits to shareholders.

    Can I buy fractional shares of Slack?

    Some brokers, including eToro and StashApp, allow you to purchase fractional shares of Slack and other stocks. When fractional shares are available, you can invest in Slack in increments as small as one dollar at a time.

    See Our Full Range of Stock Buying Resources

    All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
    michaelgraw

    Michael is a writer covering finance, new markets, and business services in the US and UK. His work has been published in leading online outlets and magazines.

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