By Christiana Sciaudone
Investing.com — Slack’s getting none as it failed to wow the market with quarterly results.
Shares tumbled 15% on Wednesday, a day after reporting second quarter billings of $218 million that missed the average estimate of $232.9 million, according to data compiled by Bloomberg. Slack Technologies Inc (NYSE:) also slumped 16% in aftermarket trading Tuesday following the earnings report.
Canaccord Genuity, which has a buy rating on the stock, lowered its price target for Slack to $32 from $38 as analyst David Hynes said the “good outweighs the bad, despite what the stock might tell you,” according to Seeking Alpha.
The billings and net dollar retention disappointments in the most recent quarter were offset by new paid customer strength for the second consecutive quarter, Hynes said. The main question is whether the quarter’s issues are “cyclical, structural, or perhaps the result of competition.”
Piper Sandler (NYSE:), which also has a buy-equivalent rating on Slack, cited “rising execution risk” and expects a further softening of growth.
Wedbush, which has a sell-equivalent rating on the stock, remains on the sidelines as competition from Microsoft (NASDAQ:) Teams looms, Seeking Alpha reported.
Slack has five buy ratings, four holds and two sells, according to analysts tracked by Investing.com.
Earnings per share of 0 cents beat the estimated loss per share of 3 cents, on sales of $215.86 million, which compares to the expected $209.08 million, according to analysts tracked by Investing.com.
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