The cowardly actions collapse after the dreary forecasts

(Reuters) – Shares of Slack Technologies Inc (TRAVAIL.N) fell by 14%, wiping out almost all of their gains since the company's listing in July, after the workplace messaging company warned of slowing revenue growth in a context of intensification competition.

The business-oriented messaging and communications platform, which was made public through a direct list, has managed to record a lower than expected loss in its first report as a public company.

But expenses take a toll. Slack tries to become the leading source of workplace communication and competes with Microsoft Corp.MSFT.OThe teams, which in July had more than 13 million active users a day, three million more than Slack.

Credit Suisse analysts predict that competition with Microsoft and slowing growth in free cash flow will reduce the value of the security to $ 25.

"Slack is not profitable and we do not expect the company to become profitable in the short term," D.A. Davidson analysts said:

Despite disappointing forecasts, the title has only suffered two price reductions and has not been downgraded.

The brokerage firm said Slack's forecasts were very conservative, as is the case for the initial public offerings of software, noting that the indications were still above their own previous consensus.

"By backtracking, we appreciate Slack for its near-ubiquitous nature, its rapid growth, its clear, clear winds and its vast market opportunities. Our due diligence is so very positive, "D.A. Davidson analysts said.

At a conference call with analysts, General Manager Stewart Butterfield said, "Most of our large corporate clients use Office 365. They have always chosen Slack because only this one was able to meet their needs. needs."

"Several important customers at Office 365 customers are making us feel better about Slack's ability to compete with Office 365's customer teams," said Credit Suisse analysts.