Topic: How To Invest

Power Growth Investor Hotline – Friday, December 6, 2019

Article Excerpt

SLACK TECHNOLOGIES INC., $22.50, is a buy for aggressive investors. The tech company (symbol WORK on New York) provides firms with an application to helps their teams of employees communicate through chat and direct messaging. The primary function of Slack’s software is to replace the use of email inside an organization. Unlike email, most activity on the Slack platform happens in team-based “channels,” rather than in individual inboxes. The company is a brand-new listing, having gone public on June 19, 2019. In the quarter ended September 30, 2019, Slack’s revenue jumped 59.7%, to $168.7 million from $105.6 million a year earlier. The company has more than 12 million daily active users, but just 105,000 paying customers. Still, investors should note that, that represents a 30% jump from a year earlier. In addition, many of those customers are large organizations—among them Autodesk, Liberty Mutual, NASA, Panasonic, Target, Airbnb, Samsung and Oracle. Each of them represents thousands of paid accounts. Excluding one-time items, the company lost…