Ticker delayed 20 minutes
SLACK TECHNOLOGIES INC (WORK)
EARNINGS RELEASE - JUNE 4 (AMC)
Avg Daily Volume: 16,226,907 Market Cap: 13.51B
Sector: None Short Interest: 17.47
THIS QTR: EPS: -.06/share REV: 188.16/M
LAST QTR: EPS: -.05/share ACTUAL: -.04/share (BEAT)
NEXT QTR: EPS: .06/share REV: 199.8/M
FULL YR: EPS: -.20/Share REV: 860.26/M
*These are the base metrics we will be watching against the actual release numbers
BEAT/MISS RECORD: 64% OF THE TIME THEY BEAT ESTIMATES
PRIOR ‘JUMP ZONE’ MOVES (LAST 3 QTRS %) -25.52, 5.4, -16.31
EXPECTED JUMP MOVE: 10-15%
*** With market volatility at extremes during the coronavirus pandemic there is greater risk in trading these events which may not react as they would under normal market conditions. Please take extra caution before trading.
Links To Latest News and Headlines
Shares of Zoom Video Communications Inc. were up 4%, at a record high of $588.84, in early-afternoon trading on Monday. The live-video platform, which has flourished during the coronavirus pandemic, continues to thrive as a digital vehicle for working and communications amid competition from Microsoft Corp. and Slack Technologies Inc. . Zoom shares are up 754% this year, while the S&P 500 index has advanced 7% in 2020.
Software is reshaping the way we do things. Along the way, it's handing investors some great opportunities.
Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) subsidiary Google said Thursday that it would make its Chat service available for free to all users beginning the first half of 2021.What Happened: Chat will replace Google's Hangout service, and users of the latter would be migrated automatically along with their existing conversations, Google's group product manager Matthew Leske said in a statement.Chat is a part of the paid business-focussed Google Workspace. That service was unveiled earlier this month and contains Gmail, Calendar, Drive applications, which earlier formed a part of its G Suite service. The messaging service would be available as part of Gmail, as well as in a standalone Chat app. It contains features like direct and group messaging, alongside the possibility to collaborate with others and share files, said Leske.Google Fi users would be able to use Messages to manage their SMS, instead of Hangouts. Similarly, they would be able to use Messages to make voice calls and check voicemail.Why It Matters: The group chat, collaboration, and integration of other tools pitch Chat as a rival to offerings of Slack Technologies Inc (NYSE: WORK), Zoom Video Communications Inc (NASDAQ: ZM), Microsoft Corporation's (NASDAQ: MSFT) Teams, and Facebook Inc.'s (NASDAQ: FB) Workplace.Google was accused of leveraging its dominance by a Congressional committee probing antitrust issues this month.Last month, Slack said it added 8,000 net new paid customers and it had more than 87 paid customers that provided it with revenue in excess of $1 million in recurring revenue. The company raised its revenue by 49% year-over-year to $215.9 million in the second quarter.Zoom grew its revenue by 355% to $663.5 million, as per its second-quarter results. Price Action: Alphabet Class A shares closed nearly 0.5% lower at $1,555.47 on Thursday. On the same day, the company's Class C shares closed almost 0.6% lower at $1,559.13.Photo courtesy: Google LLCSee more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Bill Gates Says Tech Giants Should Be Probed Separately If Regulators 'Want To Get Serious' About Antitrust Concerns * Apple's 5G iPhone Line Sees Mixed Response In China: Survey(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) — Software stocks have been among the best performers of 2020, juiced by revenue growth related to stay-at-home measures and lofty expectations for future gains. But a blowup at cloud provider Fastly Inc. served as a stark reminder of how some of those hopes may prove misguided.Fastly plummeted as much as 31%, its worst session on record, after a revenue warning for the third quarter rebutted a growth narrative that had made the company the fifth-best performer in the Russell 1000 Index this year. While some of the weakness was related to geopolitical tensions and its exposure to TikTok owner ByteDance, Fastly also warned of reduced revenue from other customers.Fastly’s slowdown highlights the precariousness of lofty software valuations. Massive share plunges are the price paid when these businesses fall short of perfection. Software stocks have been among the year’s leaders, with an S&P index of software makers up more than 43% in 2020, topping even the 31% gain of the S&P 500’s tech index.This “dramatic outperformance” is creating some valuation risks, according to Mizuho Securities, which recommended clients take “a more surgical approach to stock selection.”Many cloud-based software makers, including Zoom Video Communications Inc., Twilio Inc. and Okta Inc., saw product usage spike when businesses moved to work remotely at the start of the pandemic. But many companies haven’t seen enduring demand surges to match Zoom’s, where quarterly revenue jumped 355% in the period ended in July, the second consecutive period of triple-digit sales growth.Some cloud companies are balancing a pickup in demand from large enterprise clients that are insulated from the pandemic against a drop-off in purchases from cash-starved small- and mid-sized business that have reduced spending. Disclosing even mixed results, let alone a miss, usually means paying a steep price. Slack Technologies Inc. shares lost 14% of their value the day after reporting disappointing quarterly billings in September. PagerDuty Inc. plunged about 26% one day last month after projecting revenue that fell short of Wall Street estimates.Among Fastly peers, Limelight Networks dropped 5.1% on Thursday while Akamai Technologies was off 4%. B Riley said that Fastly’s issues were unlikely to be seen across the sector.Walter Pritchard, an analyst at Citi, noted that even with Fastly’s sell-off, shares were trading at a multiple he called “unsustainable, especially with reduction in growth rate.” In a bear-case scenario for Fastly and other content-delivery networks, “even 10x sales could be hard to justify.”Fastly’s price-to-sales ratio of 35 stands out even in the software industry. The ratio is more than three times the average in the S&P North American Expanded Technology Software Index. By comparison, the S&P Information Technology sells for about 6.5 times sales, while the Nasdaq 100 is at 5.1.While many Fastly analysts continue to see rosy long-term prospects, especially as the pandemic accelerates the use of cloud computing and streaming video, they were caught off guard by the latest warning. At least two firms downgraded the stock, including Stifel, which wrote that due to Fastly’s “premium valuation and uncertain core organic growth, we expect the stock to meander in coming quarters.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In the latest trading session, Slack Technologies (WORK) closed at $28.60, marking a -0.52% move from the previous day.
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