Why Slack Technologies Stock Gained 30% Last Month
Shares of Slack Technologies (NYSE: WORK) rose 30.3% in February 2020, according to data from S&P Global Market Intelligence. The surge hinged on two big moves: one clear-cut 11% jump based on a bullish analyst note and one downright confusing market reaction when Slack announced its biggest contract ever.
First, analyst firm RBC Capital got Slack's February party started with an "outperform" rating and a target price 19% above the stock's price at the time. RBC likes Slack's unique communications platform and market-leading brand name, and the firm expects Slack to post 30% annual revenue growth for several years to come.
One week later, Business Insider reported that Slack had signed a new long-term contract with technology giant IBM (NYSE: IBM). The news drove share prices as much as 17% higher until Slack issued a clarification: IBM has actually been Slack's largest customer for years. The contract is growing, but there was no massive new win to report. The stock actually fell more than 5% in after-hours trading that day. When all was said and done, Slack's stock rose roughly 12% around the IBM-related not-quite-an-announcement.
Source Fool.com
