Shares of Slack Were Exploding and Then Falling on Monday

Software company Slack’s shares were up as much as 15% on Monday as Wall Street reacted to a news report on the stock.
It was in after-hours trading that shares fell 8% after the company filed an 8-K that downplayed the news.

It was earlier in the day that Business Insider reported that Slack had “just scored its biggest customer deal ever,” and said that IBM had recently decided to deploy its technology to all of its 350,000 employees.

Slack then said in the filing that “IBM has been Slack’s largest customer for several years and has expanded its usage of Slack over that time.”

Slack also said that it would not update its financial guidance for the fourth quarter or its fiscal year ended January 31, 2020.

According to the Business Inside report, an IBM executive said more than 300,000 of its employees already had access to Slack and the company was working to onboard the last 50,000. The report said this expansion means that “IBM is now Slack’s single largest customer.”

Slack’s filing said IBM has long been its largest customer.

Disclaimer: We have no position in Slack Technologies Inc. (NYSE: WORK) mentioned and have not been compensated for this article.