Thursday’s Headlines: Slack Stock Falls Despite Beating Analysts
1. Slack shares dropped about 4% in extended trading on Wednesday. The workplace software developer reported better-than-expected quarterly results but provided a concerning outlook with guidance predicting losses of between 6 and 7 cents per share, suggesting costs may be higher than expected. The SaaS company outlined a loss of 2 cents per share on revenue of $169 million, versus estimates of a loss of 8 cents per share on revenue of $156 million, with sales up 60% year on year. Slack has been troubled by growing costs as well as increased competition from Microsoft Teams and is down more than 40% from its first-day close on June 20. For the complete report, read here.
2. GoPro investors received some welcome news on Wednesday night after the company reported record Black Friday and Cyber Monday sales, boosted by new cameras. GoPro’s total camera sales surged 120% year-over-year in the time between the two shopping days, with customers responding well to the company’s latest products, the Hero8 Black and Max, as well as additional new GoPro app features. The sales may not be enough to revitalize the struggling company but will be a welcome boost, as GoPro recently reported sales of $131 million in the third quarter and a net loss of $75 million, or 51 cents a share loss. Read the full report here.
3. Shares in the world’s third-largest beer company, Constellation Brands was down on Wednesday following news that it would be selling the struggling Ballast Point Brewing Company. Purchased for an eye-watering $1 billion in 2015, Ballast has suffered two straight years of decline, and will be purchased for an undisclosed fee by hotelier-turned-brewery owner Brendan Watters. If Constellation could not make Ballast work, it’s unclear how an unknown startup that made just 550 barrels of beer in 2018 can turn things around. Get the full story here.