Slack shares tank after dismal forecast

REUTERS: Shares of workplace messaging company Slack Technologies Inc were set for their worst day since the company made its stock market listing in June, after it flagged slower revenue growth amid intensifying competition.

Credit Suisse analysts expect competition with Microsoft and slower growth in free cash flow to cut the stock's value to US$25. Slack's shares were down 13.7per cent at US$26.80 in premarket trading. Analysts at D.A. Davidson said Slack forecasts very conservatively, as is normal for recent software initial public offerings, noting that the guidance was still above their own prior consensus."Stepping back, we like Slack for its near-ubiquitous nature, rapid growth, secular tailwinds and large market opportunity and our due diligence is very positive," D.A. Davidson analysts wrote in a note.

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