Let’s talk about slack baby. Slack (NYSE: WORK) if you don’t know, is a simple messaging software that has made a name for itself in the business world as one of the premier go-to’s for simple in office messaging between teams, individuals, and clients outside of the firm. Slack listed for its IPO this year and as probably many predicted, it isn’t going so well.
First off, let’s get the elephant out of the room, I use Slack. I actually like slack. And yes, I see the benefits of it. Slack is a low cost, but with giant functionality in the platform that streamlines work and definitely helps mediate the email inbox. Don’t fucking email me about what you had at the taco stand Brian, fuckin’ slack me bro. Don’t send over a bunch of attachments, Lisa. Slack me dawg. It’s easy, cheap, and user friendly. I definitely see why Slack has been a huge pick over the years.
BUT
Slack just can’t compete. If you know slack and have used the platform, please go ahead tell me what else you use Slack for? You can’t. And the reason why is because although slack has consistently beat competitors on a messaging standpoint, they don’t/can’t do much else. I am not sure about Slack’s R&D department but I’m guessing it’s not massive. Sure, tons of users and a subscription service look good, but what makes you different? I’ve used Google Hangouts to the exact same success as I have Slack. Microsoft has this thing called “Teams” coming out? Supposedly it’s the final nail in the coffin for Slack. It just doesn’t seem like they really care to evolve.
Slack’s recent earnings report soured investors even more, with weak guidance, and not much of a game plan. Did I mention they are unable to be profitable? Oh yeah, like most recent IPO’s Slack is not only unprofitable but it also doesn’t see itself turning a profit till TWENTY TWENTY-THREE. I mean, I can understand some hardships but Slack literally shit the bed. It is exposed now to not only the market but competition in the market as well. Remember MySpace? Yeah, Slack kind of reminds me of MySpace. It was the only one of its kind till others came out of the woods, tore it to pieces, and pissed on it’s grave. Slack may not have the same fate, but if it does, you heard it here first.
Look Slack IS a great tool. It has functionality, plenty of users, and a cheap way to acquire more. It has some serious road blocks, mainly innovation, customer retention, and competition. All in all, I personally wouldn’t invest in Slack. It trades at about $27 a share but has been declining ever since it IPO’d. I can’t blame investors for having doubts. Slack, start fucking innovating and changing parts of your business. The core is solid, that’s undeniable, but you guys have plenty of room for growth and development.
Slack is a dope platform, but a shitty stock. Use it, don’t invest in it.
At least, that’s my take on it. Until next time.
-GS
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