Wednesday’s Headlines: Slack Stock Falls On Microsoft Success
1. Slack stock took a haircut of more than 8% on Tuesday following a report that Microsoft Teams has seen its daily active user count rise to 20 million, up from 13 million in July. The growth bodes well for Microsoft’s Office 365 subscription-based productivity bundle, a key part of the company’s ongoing strategy alongside the Azure public cloud. Microsoft has now greatly extended its lead over Slack — who reported 12 million users last month — and boasts Alcoa, L’Oreal and Telefonica among the enterprises using Teams, as well as 350 other organizations with at least 10,000 users each. Get the whole story here.
2. Popular U.S. retailer Home Depot saw its shares drop more than 5% on Tuesday after falling short on sales and once-again cutting forecasts for the year. Despite earnings beating expectations, the company said revenue, which missed analysts’ targets, was hurt by investments it is making in its business which have not yet benefited its sales. The report is a slight setback for the company, which saw its stock hit a 52-week high on Monday of $239.31, and has risen 39% year-to-date. For the complete earnings report, read it here.
3. Google launched its first cloud-based video game service on Tuesday, which will allow users to stream popular titles such as ‘Assassin’s Creed’ and ‘NBA2K20’. The service has a premium subscription option, priced at $9.99 per month, a full $5 more than Apple’s corresponding ‘Arcade’ service which launched in September. “We have over 450 games in development right now that will be coming out in 2020 and beyond,” Google Vice President and General Manager Phil Harrison told Reuters, and is currently available in 14 countries. Catch up on the entire announcement here.