FILE PHOTO: The Slack Technologies Inc. logo is seen on a display on the floor of the New York Stock Exchange (NYSE) during the company’s IPO in New York, U.S. June 20, 2019. REUTERS/Brendan McDermid
(Reuters) – Shares of Slack Technologies (WORK.N) dipped 3% on Thursday ahead of the workplace communication platform’s quarterly report, pausing a three-month rally fueled by millions of people working from home due to the coronavirus.
A top pick among traders betting on shares of companies benefiting from the recent shutdown of the U.S. economy, Slack on Wednesday closed at a record high after more than doubling from lows in March during Wall Street’s broad selloff.
However, the unprofitable company faces massive competition from Microsoft’s (MSFT.O) Teams workplace chat software, and its recent surge has stretched its valuations.
“The biggest risk to Slack in our view is that the good news is