Thursday’s Headlines: Is Slack Being Bought Out?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Slack Technologies (WORK) +37.6%
Nordstrom (JWN) +11.6%
Smartsheet (SMAR) +8.0%
Chegg (CHGG) +5.6%
Etsy (ETSY) +5.4%
Moving Down ⬇️
Pure Storage (PSTG) -8.2%
Ford Motor Company (F) -3.9%
Planet Fitness (PLNT) -3.3%
IMAX (IMAX) -2.6%
Texas Roadhouse (TXRH) -2.5%
1. In news that shocked us all here at MyWallSt, reports have emerged that Slack (WORK) is the subject of a potential takeover bid by Salesforce (CRM), sending the former’s shares soaring 38% and the latter’s down 5%. Salesforce has been on an acquisition spree in recent years, buying MuleSoft and Tableau, but any deal for the $23 billion valued Slack would dwarf those purchases. Salesforce CEO Marc Benioff has a good reputation for growth among investors, and given Salesforce’s formidable size, it could make Slack a genuine threat to Microsoft Teams (MSFT). Let us know @MyWallStHQ whether you’ll be holding $WORK shares or selling following this news. Read the full story here.
2. Not even yet another mass product recall stopped Tesla (TSLA) stock from jumping 3.35% yesterday, bringing the company’s momentum from breaching a $500 billion market cap deeper into the week. In a statement released yesterday, Tesla announced that it is recalling more than 9,500 of its Model X and Model Y electric vehicles over potentially faulty roof trim and bolts that could be inadequately tightened, including 9,136 Model X cars produced between Sept. 17, 2015, and July 31, 2016. That makes two recalls in as many months after Tesla voluntarily recalled nearly 50,000 Model S and Model X cars in China over faulty suspensions in October. However, with stock growth of 37% in the past month, investors don’t seem all that bothered about it and are instead fixed on the company’s S&P 500 inclusion which will begin on December 21. Read the official press release here.
3. Elsewhere in the growing electric vehicle (EV) market, Ford Motors (F) saw its stock fall almost 4% on Wednesday as Morgan Stanley (MS) downgraded the firm over its ambiguity related to EV development. In a press release, the company stated: “We believe it [Ford] can ultimately transition to EVs and can leverage strong fleet/commercial positions (F-150, Transit van) but faces substantial headwinds on high-margin [internal combustion engine] products that face de-adoption.” Ford’s lack of clear EV strategy has been a thorn in its side for some time now as it struggles to keep up with rivals Tesla and General Motors (GM), leading its stock to decline 40% in the last 5 years. Read our opinion on Ford as an investment here.
Get this week’s full earnings calendar here.