Work Stock Price: Slack Technologies Inc may benefit from bidding war after Salesforce-related jump
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UNLOCK OFFER- NYSE: WORK is set to open Black Friday's session with a fall.
- Slack Technologies Inc surged by 37% amid reports that Salesforce would buy it.
- A bidding war could boost shares later down the line.
Is Slack about to become part of Salesforce? The Wall Street Journal reported that Slack Technologies Inc (NYSE: WORK) is in advanced talks with Salesforce.com inc. (NYSE: CRM). According to the esteemed media outlet, the veteran software firm would pay a substantial amount of money for the Vancouver-based work productivity company.
However, markets tend to exaggerate and the 37% leap sent Slack to a valuation of over $23 billion, far above the "more than $17 billion" that the WSJ reported. Black Friday's premarket trading is pointing to a discount of around 4% and a share price of $39 against the previous closing price of $40.70.
Traders may ask: Is Slack's acquisition by Salesforce already in the price? Or is the upcoming downside correction a significant buying opportunity?
Work stock forecast
The answer for long-term investors would be to wait for the deal to close and then reassess the synergies of both companies. However, there may opportunities in the shorter term, and that may heavily depend on a potential bidding war for Slack.
The WSJ report may have caught the attention of other large software companies such as Microsoft (NASDAQ: MSFT). Microsoft Teams is competing with Slack in the field of productivity tools and may show interest in buying a rival. Alphabet (NASDAQ: GOOG) is also making bigger strides into the corporate world with significant upgrades to its Google Meets product.
Additional suitors may also wake up and realize that Slack is on the market and perhaps the Salesforce price tag may be too low. The longer there is interest in Slack, the higher NYSE: WORK can go.
On the other hand, if Salesforce and Slack announce an agreement which is of a relatively modest value, shares of the popular service could fall.
- NYSE: WORK is set to open Black Friday's session with a fall.
- Slack Technologies Inc surged by 37% amid reports that Salesforce would buy it.
- A bidding war could boost shares later down the line.
Is Slack about to become part of Salesforce? The Wall Street Journal reported that Slack Technologies Inc (NYSE: WORK) is in advanced talks with Salesforce.com inc. (NYSE: CRM). According to the esteemed media outlet, the veteran software firm would pay a substantial amount of money for the Vancouver-based work productivity company.
However, markets tend to exaggerate and the 37% leap sent Slack to a valuation of over $23 billion, far above the "more than $17 billion" that the WSJ reported. Black Friday's premarket trading is pointing to a discount of around 4% and a share price of $39 against the previous closing price of $40.70.
Traders may ask: Is Slack's acquisition by Salesforce already in the price? Or is the upcoming downside correction a significant buying opportunity?
Work stock forecast
The answer for long-term investors would be to wait for the deal to close and then reassess the synergies of both companies. However, there may opportunities in the shorter term, and that may heavily depend on a potential bidding war for Slack.
The WSJ report may have caught the attention of other large software companies such as Microsoft (NASDAQ: MSFT). Microsoft Teams is competing with Slack in the field of productivity tools and may show interest in buying a rival. Alphabet (NASDAQ: GOOG) is also making bigger strides into the corporate world with significant upgrades to its Google Meets product.
Additional suitors may also wake up and realize that Slack is on the market and perhaps the Salesforce price tag may be too low. The longer there is interest in Slack, the higher NYSE: WORK can go.
On the other hand, if Salesforce and Slack announce an agreement which is of a relatively modest value, shares of the popular service could fall.
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