SHARES FOCUS: Slack Certainty hits Salesforce investors hard | 12/02/20


NEW YORK (dpa-AFX) – The official confirmation of the takeover by Salesforce did not tear Slack’s investors off their stools on Wednesday. The shares fell after the speculation of the past few days and their record rally triggered by 1.8 percent. Those from Salesforce, however, exacerbated their most recent downward trend. With a price slide of 6.8 percent to 224.82 US dollars, the papers of the software company in the Dow became a burden.

Salesforce announced Tuesday after the US market closed that the companies had reached an agreement that valued Slack at around $ 27.7 billion. This confirmed the speculations of the past few days, which had recently driven the shares in different directions: Slack up, Salesforce down. The former recently hit a record $ 44.15, while the latter fell on Wednesday at $ 215, its lowest level since August.

Initial reactions on the market showed that the $ 27.7 billion purchase was valued at a high price. Credit Suisse analyst Brad Zelnick, for example, commented that the now known conditions would have to digest even the optimists. The news should weigh on the stock in the short term, believes Jefferies Research’s Brent Thill.

For Slack, on the other hand, the takeover was recently welcomed on the market and is now apparently already priced in by investors. Mark Moerdler also believes in a good deal for investors. On Wednesday, he expressed his doubts about the sustainability of Slack’s growth and thus also about the share price perspective. His guess is that these are also the main reasons management agreed to a sale./tih/he

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