WORK aka Slack was a very promising trade with the work from home (WFH) explosion driving stocks like ZOOM, PYPL, SQ, FB, AAPL, MSFT and CRM to name a few.
Unfortunately WORK's performance was lukewarm, and quarterly results proved the same. With services like Zoom Video, Facebook Workplace, Microsoft Teams, Salesforce and more providing a lot of tools that compete in one way or another with Slack's tools, the business is growing steadily but is failing to see the hypergrowth curve driving market gains for its peers.
The downward channel should be observed and any break out of it to the upside with volume would have a greater risk-reward trade than trying to play a $4 trade. Though, with a $1000 investment at a price of $26, one has the opportunity to scalp up to $152 with a sale near or at $30. We don't recommend any trades for those with a low appetite for risk, and we ALWAYS recommend a stop-loss, or the opportunity to cost average if you are longer-term on the stock.
*Note: Risking a downside of anything more than your upside potential is never a good idea. With a chance at 15% upside, one should also assume the risk of 15% downside MAX and take the applicable stop-loss at this level.
The fundamentals of this stock are sound. We'd rate it neutral or HOLD in the short-term, though your money might work for you better in another stock. Alternatively, one could argue that WORK benefits vs other technology stocks having not been "overbought" in recent months. Though, the overall weakness and slow growth make a stronger argument, as well as the general market trend to the downside which Slack's Beta has proved prior (March) to be sensitive to.
If you are in the stock, getting out now or anywhere close to $30 in the short term might prove opportunity to get in at cheaper prices again. However, the long-term potential with this household name makes one want to hold a small position to take advantage of any surprise gains (For example those found regularly in tech stocks such as liquidity events (acquisition) or product releases).
Disclaimer: I am not a professional, nor do I claim to know what I am doing. I chart for my own education and revealing potential trade setups. I am always open to constructive feedback and resources that you can recommend to "up" my game. Thank you!
Unfortunately WORK's performance was lukewarm, and quarterly results proved the same. With services like Zoom Video, Facebook Workplace, Microsoft Teams, Salesforce and more providing a lot of tools that compete in one way or another with Slack's tools, the business is growing steadily but is failing to see the hypergrowth curve driving market gains for its peers.
The downward channel should be observed and any break out of it to the upside with volume would have a greater risk-reward trade than trying to play a $4 trade. Though, with a $1000 investment at a price of $26, one has the opportunity to scalp up to $152 with a sale near or at $30. We don't recommend any trades for those with a low appetite for risk, and we ALWAYS recommend a stop-loss, or the opportunity to cost average if you are longer-term on the stock.
*Note: Risking a downside of anything more than your upside potential is never a good idea. With a chance at 15% upside, one should also assume the risk of 15% downside MAX and take the applicable stop-loss at this level.
The fundamentals of this stock are sound. We'd rate it neutral or HOLD in the short-term, though your money might work for you better in another stock. Alternatively, one could argue that WORK benefits vs other technology stocks having not been "overbought" in recent months. Though, the overall weakness and slow growth make a stronger argument, as well as the general market trend to the downside which Slack's Beta has proved prior (March) to be sensitive to.
If you are in the stock, getting out now or anywhere close to $30 in the short term might prove opportunity to get in at cheaper prices again. However, the long-term potential with this household name makes one want to hold a small position to take advantage of any surprise gains (For example those found regularly in tech stocks such as liquidity events (acquisition) or product releases).
Disclaimer: I am not a professional, nor do I claim to know what I am doing. I chart for my own education and revealing potential trade setups. I am always open to constructive feedback and resources that you can recommend to "up" my game. Thank you!