rtmark
LearnBonds.com

Slack Stock: Slow Revenue Growth Could Hinder Sentiments

Slack stock

Slack (NYSE: WORK) stock stood among the laggards of 2019 due to the deep share price selloff in the past six months. The WORK share price lost investor’s confidence amid increasing market competition from Microsoft (NASDAQ: MSFT) and a few other players. Downbeat commentary from market analysts is adding to bearish sentiments.

Slack stock price plummeted more than 40% in the past two quarters. The WORK share price is currently trading around 52-weeks low of $19. Fortunately, some analysts believe Slack shares had already hit the bottom in fiscal 2019; the share price is likely to stabilize in the coming days. In addition, market pundits are predicting that Slack could be acquired this year.

WORK Slack Technologies, Inc. daily Stock Chart

Analysts are Pessimistic About Slack Stock Fundamentals

The market analysts have dropped their price targets for Software Company. This is because of increasing market competition and lower than expected sales growth.

For instance, Baird reduced its price target to $31, saying SaaS multiple contractions could negatively impact the share price. Despite concerns over future growth, its analyst also praised strong Q3 results along with the solid improvements in profitability and cash flows.

Wedbush appears bearish about future trends. The firm declined the price target to $14 with an Underperform rating. Its analyst Dan Ives claims that valuations and growth profile is hinting further downside potential in the coming days.

The Information analyst Kevin McLaughlin predicts Slack to become the M&A target in 2020. The analyst blamed sluggish revenue growth for bearish sentiments.

Revenue Growth is Cooling

Although the company generated 60% year over revenue growth in the latest quarter, it only expects a small sequential revenue increase for the final quarter of 2019. The company anticipated Q4 revenue to stand in the range of 172-174M, up slightly from $168 million in the previous quarter. Moreover, the market analysts are forecasting slower growth for the next year. The company has also been struggling to generate positive earnings and cash flows, which could hinder its investment potential.

Trusted & Regulated Stock & CFD Brokers

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
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.
Avatar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.