Slack (NYSE: WORK)
Slack has only been a listed company since June. Slack’s platform is described as the first upgrade to email since the 1970s. The platform is like an instant messaging platform but offers numerous features to improve team productivity and collaboration.
The market value of Slack is $12 billion, and annual revenue is running at about $500 million. The company is not yet profitable, and so a speculative bet. However, revenue is growing at nearly 100% and the company has a lot of room to grow.
Slack is a more efficient tool than email when it comes to team collaboration. The company already has 12 million active daily users, of whom half are paying subscribers. While Microsoft, Google, and Facebook all offer competing products, users prefer Slack because it is intuitive and the list of features it offers is growing every month.
The stock began trading at $40 which was much too high. It has since fallen to $22, where it looks more attractive. If it was to fall much further it would probably be bought by a competitor, while it could also be trading at $50 in the next few years. So, the downside is relatively limited compared to the upside potential.
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