![]() Slack is also now more valuable than Pinterest, the digital pinboard company that had been worth more than the messaging company in the private market. Lyft stock is down 13 percent since it went public in March. The fervor for such companies pushed Slack’s valuation above that of other recent newly public tech companies, such as Lyft, which has a market capitalization of about $18 billion. “There’s never been a better time to go public than right now.” For those companies, “it’s all systems go,” he said. The performance of recent I.P.O.s shows that investors are hungry for high-growth companies with a “reasonable” and “believable” ability to turn a profit, said Barrett Daniels, a partner at Deloitte who focuses on I.P.O.s. In its offering paperwork, Slack estimated the entire market for workplace collaboration services was $28 billion - less than Microsoft’s revenue in a single quarter. The company, which is based in San Francisco, is small compared with larger rivals like Microsoft. All have seen their values at least triple after they went public in recent months. Those include Zoom, a video conferencing company PagerDuty, a business software provider Beyond Meat, a meat alternative purveyor and CrowdStrike, a cybersecurity business. Many of these large companies, which operate in untested categories, were deeply unprofitable and faced questions about whether they could make money and maintain their growth.īut smaller tech start-ups that have gone public - and which often have more room to grow and lose less money - have been warmly embraced by investors. While many big tech companies like Uber and Lyft were hyped ahead of going public, their stock prices slid once they started trading. ![]() Slack’s performance underlined a bifurcation that is taking place in tech offerings this year. That gave Slack a valuation of $19.5 billion, almost triple its $7.1 billion valuation as a private company. The stock continued to rise before closing at $38.62. Shares in the company, which makes workplace collaboration software, opened at $38.50 on the New York Stock Exchange, up from a reference price of $26 that was set on Wednesday. SAN FRANCISCO - Slack shares soared on Thursday on its first day of trading on the stock market, in a sign that Wall Street remains tantalized by fast-growing young technology firms even after the recent lackluster public offerings of larger companies like Uber. ![]()
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