Thursday’s Headlines: Why Did Slack Fall 6%?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Zoom Communications (ZM) +1.2%
Peloton Interactive (PTON) +1.2%
Calavo Growers (CVGW) +1.1%
Chipotle Mexican Grill (CMG) +0.8%
Spotify (SPOT) +0.5%
Moving Down ⬇️
StoneCo (STNE) -7.5%
TrueCar (TRUE) -7.9%
Eventbrite (EB) -8.9%
Tripadvisor (TRIP) -9.7%
Wynn Resorts (WYNN) -11.0%
1. Much like a circuit breaker in a house when the wires get too hot, it seems the market must throw a mild collapse our way to bring stocks back down to earth. Possibly incorrect electrician analogies aside, the Dow (DIA) did drop 2.7% yesterday while the S&P 500 (VOO) and the Nasdaq (QQQ) fell 2.5% and 2.1%, respectively, all three posting their worst days since June 11. This market pessimism comes courtesy of rising concerns related to escalating COVID-19 numbers which are hitting record numbers across several U.S. states. Read the full story here.
2. Shares in Slack (WORK) fell more than 6% on Wednesday due to a wider market sell-off, despite announcing its new Connect platform. The feature — which has been in the works for 4 years — allows companies to collaborate with partnering firms, allowing up to 20 organizations to work seamlessly together with apps, chat, and more. While Slack’s goal has been to replace e-mail within organizations, it is now looking to erase the need across inter-organizational communication as well, with CEO Stewart Butterfield calling it “a medium for enterprise software to run across organizational boundaries.” Read the complete report here.
3. Like a beacon of green hope in yesterday’s sea of red numbers, Zoom’s stock actually rose 1.2% on Wednesday after hiring a new head of security. Zoom, which suffered from a litany of privacy challenges earlier this year, has appointed an industry heavyweight in the form of former Microsoft and Salesforce security executive, Jason Lee. Zoom has been on the ride of its life in 2020 so far as work-from-home orders saw it boost its user base, helping its stock price jump 272% YTD. Read more here.
There is 1 stock in the MyWallSt app that will report earnings later today: