8/16/2023 0 Comments Slack tech stock![]() “With Microsoft moving into its field with the introduction of Microsoft Teams last year, Slack may soon find that they lack the infrastructure and expertise to keep up with the innovation and scale of the tech giant. “While it successfully moved from being a messaging app for a video game company into a company valued at $15.7bn in just six years, the business hasn’t lived up to its ambition of toppling emails quite yet,” he said. Salesforce CEO Marc Benioff says he dreams of the day when AI means the companys messaging system will wake up and become intelligent itself. Tilak Doddapaneni, executive vice-president of engineering at digital consultancy Publicis Sapient, said there were “question marks” over Slack’s business model despite its popularity. ![]() Revenues are growing fast up to $400m from $100m three years ago, but growth is slowing as the company gets larger and rival services from Microsoft and Google could eat into its business. Like most of its peers, Slack is losing money – it lost $138.9m last year and according to the company losses will “significantly increase” over the next few years. Reborn as Slack the company attracted the attention of top-tier Silicon Valley investors raising $1.4bn from companies including Andreessen Horowitz, an early investor in Facebook, Twitter, Lyft and others. When the game didn’t take off Butterfield spotted potential in the messaging app. ![]() Slack started life as a messaging app in a game created by Butterfield and others. That share sale is seen as a success and if Slack’s sale goes well too it will encourage others to follow suit. Only one other big company, the music streaming service Spotify, has gone public this way. While the method saves on banking fees it can also lead to greater volatility in the share price. A direct listing dumps the costly underwriters, who do the preliminary sales work and establish an initial price, and the investor roadshow and instead takes the company’s shares directly to the market. Slack sold its shares in a direct listing – eschewing the traditional initial public offering route. Slack Technologies trades on the New York Stock Exchange (NYSE) under the ticker symbol 'WORK.
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