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Slack gets a bearish initiation from Wedbush due to Microsoft threat

Wedbush analyst Daniel Ives began coverage of Slack Technologies Inc. with an underperform rating and $14 target price Thursday, citing competition from Microsoft Corp. . "The Slack solution is impressive and represents a strong growth opportunity; however we believe penetrating this next phase of enterprises will be incrementally more difficult as the Microsoft/Teams value proposition presents a major competitive hurdle going forward in sales cycles," Ives wrote. He expects that the threat from Microsoft's Teams product could slow growth "quicker than the Street is anticipating." Slack's stock was down 1.2% in after-hours trading Thursday. The shares have fallen 34% over the past three months, as the S&P 500 has increased 7%. Read More...

Wedbush analyst Daniel Ives began coverage of Slack Technologies Inc. with an underperform rating and $14 target price Thursday, citing competition from Microsoft Corp. . “The Slack solution is impressive and represents a strong growth opportunity; however we believe penetrating this next phase of enterprises will be incrementally more difficult as the Microsoft/Teams value proposition presents a major competitive hurdle going forward in sales cycles,” Ives wrote. He expects that the threat from Microsoft’s Teams product could slow growth “quicker than the Street is anticipating.” Slack’s stock was down 1.2% in after-hours trading Thursday. The shares have fallen 34% over the past three months, as the S&P 500 has increased 7%.

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