Slack is Making its Stock Market Debut and it Could be Wild

Slack, a maker of a popular team messaging service for businesses, is expected to debut on the NSYE tomorrow with a reference price of $26 a share.

This is just a reference price which means Wall Street shouldn’t wait for this to be the price the stock starts trading at.

The company is pursuing a direct listing, which means it will let existing shareholders sell shares, but is not selling new shares or raising additional funds.

The price of the stock is going to be determined by the designated market maker, based off a calculation of a figure where buy orders can be met with sell orders.

The company will be trading under the ticker symbol “WORK.”

For the year ending Jan. 31, the company reported a net loss of $138.9 million on $400.6 million in revenue.
Mad Money Host Jim Cramer remarked, “I’m willing to let you pay $40. … That’s well above” the reference price of $26. Now if you can get it below that, that’s even better. If not, you keep your bat on your shoulder.”

According to Cramer, Slack is a “fresh-faced” enterprise software play with a strong growth rate.

“This is exactly the kind of stock that investors … they can’t resist it, they can’t get enough of it,” he said. “So I expect this one to run tomorrow.”

“In short, Slack’s overall growth is fantastic,” he said. “The company’s on the path to profitability. The balance
sheet is fine.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.