slack salesforce stock

Salesforce in December agreed to buy Slack for $27.7 billion in cash and stock. We want to hear from you. Slack took the workplace communications … Get top-quality trade ideas at the push of a button with the IBD Stock Screener. Its software helps businesses organize and handle sales operations and customer relationships. A year earlier, Salesforce earnings were 66 cents a share on sales of $4.85 billion. Slack’s stock climbs on possible Salesforce acquisition Ultimately, Slack was ripe for the taking. What Happened: Salesforce.com Inc (NYSE: CRM) is acquiring Slack Technologies (NASDAQ: WORK) in a $27.7 billion deal that will pay existing Slack … Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. San Francisco-based Salesforce plans to … The purchase marks one of the largest ever for the software industry. Excluding investment gains of 22 cents per share, Salesforce earnings rose 24% from a year earlier to 82 cents a share on an adjusted basis. Sign up for free newsletters and get more CNBC delivered to your inbox. Salesforce stock drops 11% after company announced plan to buy Slack as analysts question the wisdom of the $28 billion acquisition. The acquisition closing price will be $26.79 plus 0.0776 times the Salesforce stock price. The biggest was IBM's $34 billion purchase of Red Hat in 2018, followed by Microsoft's $27 billion acquisition of LinkedIn in 2016. Davidson, in a report last week. Ives, who recommends buying Salesforce shares, said Teams "has been a clear hurdle to growth" for Slack and that the market will now be "a two horse race between Microsoft and Salesforce.". The information and content are subject to change without notice. The company has expanded into marketing, customer services and e-commerce. WATCH: Would Salesforce buying Slack be offensive or defensive? Other stocks mentioned: CRM. New York (CNN) Salesforce is buying workplace messaging app Slack for $27.7 billion, marking the largest acquisition in the San Francisco-based cloud-based company's history. PINS Stock Cooks Up Buy Zone Ahead Of Earnings. But the forecast for the full year of 21% to 22% growth would represent the company's slowest rate of expansion since 2010. Due to the discount in Slack's stock vs. how much Salesforce.com is paying for the company there is a way to sell Put options and generate 10% plus annualized returns over the next three to five months. Salesforce — whose stock is up a mere 44.5% in 2020, compared to the Emerging Cloud Index’s 88% pop as of December 1 — is paying too much in exchange for too little top-line growth. We've lived that life.". Meanwhile, CRPO bookings are an aggregate of deferred revenue and order backlog. The deal reflected a $27.7 billion enterprise value at the time of the announcement. Heading into the Salesforce earnings report, the stock owned a Relative Strength Rating of only 34 out of a possible 99. Quill, the messaging app backed by Index, quietly comes out of stealth to take on Slack . According to IBD Marketsmith analysis, Salesforce stock is not a buy. Analysts expected Salesforce to report earnings of 75 cents on sales of $5.68 billion. It was created by Stewart Butterfield, famous in the tech world for starting photo-sharing site Flickr and selling it to Yahoo. Analysts had projected a profit of 76 cents a share. The acquisition — which has not been completed yet — would end Slack’s run as a public company (it first went public in 2019). "We have been surprised by the limited success Slack has seen from the pandemic and the rise of remote work," wrote Rishi Jaluria, an analyst at D.A. Slack sells workplace collaboration software. Don’t miss Mark Minervini on IBD Live this Monday! Salesforce stock slipped 0.7% to finish at 245.80. This represents a 55% premium to Slack’s price on Nov. 24, the day before reports surfaced about a potential deal. A Division of NBCUniversal. In the current market the 0.0776 values at $18.72 per share, which totals the value of the payout to $45.51 a share. The deal, expected to close in the second quarter of fiscal 2022, should boost Salesforce vs. Microsoft (MSFT), analysts say. For Salesforce, the Slack deal is the latest in CEO Marc Benioff's multiyear acquisition spree. Salesforce is the dominant player in customer relationship management software, where Microsoft is a distant challenger. The news comes as Salesforce (CRM) is expected to acquire Slack Technologies (WORK). Our processes have been developed to capture 75% of the upside of the S&P 500 while experiencing only 25% of the downside. Entering 2020 it had lost around 40% of its value since it went public. Slack sells workplace collaboration software. In Thursday's regular session, Salesforce shed 3.9%, Get these newsletters delivered to your inbox & more info about our products & services. With last year's purchase of Tableau, Salesforce jumped into the data visualization market, taking on Microsoft's Power BI. Now this of course will fluctuate over time, especially with the acquisition poised for mid 2022. Slack stock gained 5.4% to close at 42.88 on the stock market today. Despite clear logic behind the Salesforce and Slack tie-up, Salesforce’s stock hasn’t been that hot at the end of 2020 and into 2021. The companies also go head-to-head in productivity software, though Microsoft's Office suite controls the market along with Google. We've been there. Salesforce, which got its start by developing cloud-based software for sales reps, has dramatically expanded its reach in recent years and, along the way, become one of the most valuable software companies in the world, passing Oracle, SAP and IBM as well as other legacy tech companies such as Cisco and Intel. By October of that year, Slack had 30,000 teams signed up, including at Salesforce, and attracted funding from Google's venture arm at a valuation north of $1 billion. The acquisition will further intensify Salesforce's rivalry with Microsoft, whose Teams chat and video service has emerged as Slack's stiffest competitor. The company was originally founded in 2009 as an online gaming company call Tiny Speck. Both companies tried to buy LinkedIn, the professional networking site, but Microsoft was the ultimate winner. Slack shareholders will receive $26.78 in cash and 0.0776 a share of Salesforce common stock (CRM) for each Slack share (WORK). Trending Analysis The company forecast earnings in a range of 88 cents to 89 cents a share. All Rights Reserved. Marc Benioff, founder, chairman and CEO of enterprise cloud computing company Salesforce. By acquiring Slack, a business chat service with over 130,000 paid customers, Salesforce is bolstering its portfolio of enterprise applications and filling out its broader software suite as it seeks new areas of growth. Try it today! The shares debuted on the New York Stock Exchange in June 2019, through a direct listing. The company announced on Tuesday that it's buying chat software developer Slack for over $27 billion. Andreessen Horowitz, Accel Partners and Social Capital were among Tiny Speck's early backers. Realtime quote and/or trade prices are not sourced from all markets. The deal values Slack at over 24 times estimated revenue for next year. As such, investors might just need some time to see initial signs of progress or for Salesforce management to better communicate the deal rationale. Salesforce said the Slack purchase comes to an enterprise value of $27.7 billion, which takes into account shares outstanding along with debt and cash. For the current quarter ending in April, the enterprise software maker expects revenue of $5.88 billion at the midpoint of guidance vs. estimates of $5.72 billion. As reported, it's a cash and stock deal. Get market updates, educational videos, webinars, and stock analysis. Data is a real-time snapshot *Data is delayed at least 15 minutes. The company spent $15.3 billion on data visualization company Tableau in 2019 and, a year earlier, shelled out $6.5 billion to acquire MuleSoft, whose back-end software connects data stored in disparate places. For full-year fiscal 2022, Salesforce projected earnings of $3.40 a share, below estimates of $3.46. They shut down Glitch and focused on chat, opening it up to customers in early 2014. "Salesforce modestly raised its fiscal 2022 revenue outlook, but (free cash flow and earnings) were lower than expected due to M&A-related headwinds," Mizuho Securities analyst Gregg Moskowitz said in a report to clients. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Prior to Slack, Salesforce's biggest deals were the $15.3 billion purchase of Tableau last year and the $6.5 billion acquisition of MuleSoft in 2018. On November 30, 2020, Salesforce (CRM) announced it would acquire Slack Technologies (WORK) for $26.79 in cash and 0.776 shares of Salesforce common stock for each WORK share. The Slack/Salesforce merger arbitrage is at an attractive spread. Slack has been one of Silicon Valley's legendary stories over the past decade, orchestrating one of the wildest pivots the industry has ever seen. The stock, which opened at $38.50, has been on a roller coaster since, trading near $17 in March of this year, before climbing back close to $40 in June and then dropping back below $25 in mid-November. *Real-time prices by Nasdaq Last Sale. That comes to … The terms of the agreement will provide Slack shareholders $26.79 in cash and 0.0776 shares of Salesforce stock. Last year, the London Stock Exchange agreed to buy data provider Refinitiv for $27 billion, though the deal has yet to be cleared by European regulators. News that Salesforce is interested in buying Slack, the popular workplace chat company, sent shares of the smaller firm sharply higher today. Salesforce's annualized revenue topped $20 billion in the fiscal second quarter, with growth of 29%. The companies are battling in a number of other areas. Get Stock like returns with bond like risk. https://www.nytimes.com/2020/12/01/technology/salesforce-slack-deal.html Salesforce acquired Quip in 2016 but hasn't picked up much momentum against Microsoft and Google. 1 month ago - Forbes. Salesforce stock fell as fourth-quarter earnings topped analyst estimates but full-year fiscal 2022 profit and free cash flow guidance came in below views. How This IBD Tool Simplifies The Search For Top Stocks, Find Compelling Growth Stocks With IBD's Stock Of The Day, View Breakout Stocks & Technical Analysis, Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists. "This deal will be a major shot across the bow at Microsoft," wrote Dan Ives, an analyst at Wedbush, in a report on Monday. Much of the volatility can be attributed to Microsoft. Salesforce in December agreed to buy Slack for $27.7 billion in cash and stock. Sign up for a free trial today to watch live. The deal is expected to close by the end of July. Salesforce is buying Slack using a combination of stock and cash. Under the … Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce’s common stock … Learn how to invest in the stock market with 12 FREE daily lessons you can learn in minutes! The enterprise software maker said current remaining performance obligations, or CRPO bookings, ended 2020 at $18 billion, up 20%, vs. estimates of $17.4 billion. Slack's annual revenue topped $100 million by early 2017 and reached $400 million two years later. Salesforce, an enterprise software maker, reported January-quarter earnings late Thursday. Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, or $45.5 per share based on Salesforce’s closing price on Tuesday. Salesforce sells software under a subscription model. Got a confidential news tip? But over the course of working on it, Butterfield's team built a product to help them communicate with one another and to share files. Salesforce said it expects free cash flow growth in a range of 10% to 11%, missing analyst  estimates of 17%. Under the terms of the agreement, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce’s common stock on November 30, 2020. Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! As demand for cloud computing continues to rise with the explosion of smartphones, artificial intelligence and always-connected devices, leading cloud... 4/16/2021 Get this delivered to your inbox, and more info about our products and services. Tiny Speck's game, Glitch, was a failure. Salesforce buying Slack in a deal worth more than $27 billion, which makes it one of the biggest deals ever in the software industry. The deal pits Salesforce against Microsoft in yet another market, with the companies already going head-to-head in sales software, data visualization and productivity tools. Salesforce announced it would be acquiring Slack in a stock/cash arrangement. BREAKING: Dow Sets New Record As Stocks Close Up. “This is a match made in heaven,” stated Marc Benioff, CEO of Salesforce. Slack shares probably don't decline to the pre-deal price if the deal breaks. I did the math on this yesterday. Prior to initial reports of a deal last week, which led to a 38% pop in Slack's shares, the stock was trading at under $30. Digital Transformation Powerhouse Struggles Amid Slack Deal, Stock Splits From Apple, Tesla: Reminders Of Qualcomm Warning, ServiceNow Stock: India Market Push Gains With Purchase Of RPA Software Firm, Dow Jones Will Rise 7.6% More Thanks Mostly To 8 Stocks, Analysts Say, Microsoft Stock Shows Resilience Amid Market Upheaval, Security Concerns. Slack is projected to grow 39% this fiscal year, which ends Jan. 31, to $876.3 million, according to analysts surveyed by Refinitiv. An offensive or defensive move free trial today to watch Live push of a button with the IBD Screener... Stock and cash Salesforce buying Slack be offensive or defensive created by Stewart Butterfield, in! Estimates of $ 3.40 a share on sales of $ 3.40 a on! 'S game, Glitch, was a failure $ 5.82 billion 's Business Daily, Inc. all rights reserved a! Mystery, Could Recharge Apple stock, Pinterest Predicts Breakout CEO of Salesforce can make more money IBD. 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