The world's biggest stock exchange, NYSE, has recently made Slack Technologies' stock available for trading. This IPO was unusual because this time, the issuer decided to hold direct listing without underwriters' help. The trading stated at 26 dollars per share. After the first 24 hours of trading, the company's market cap increased all the way up to 15,7 billion dollars.
Slack Technologies followed Spotify (SPOT) to be the second company with direct listing. Spotify did this last year. The result shows that the choice was correct, Peter Rosenstreich from Swissquote thinks. By the way, Peter Rosenstreich is a financial expert and head of Swissquotes' market strategy department. He says that the Wall street hasn't offered any interesting and promising solutions for quite a while, which is why getting rid of costly but mostly useless solutions is a good decision.
Still, it doesn't mean Slack Technologies did this in a hurry without investigating into the matter. They had hired experts from Goldman Sachs, Morgan Stanley, and Allen & Co. to conslut and support the emission and IPO.
The expert say that there's a drawback in the case with Slack Technologies - the absence of profits. However, he admits that this is is something very common among young tech companies making their first steps in the stock market. For instance, UBER and LYFT didn't have decent profit stats during their IPOs. However, their stocks started gaining valu as their financial situation was improving.
Even though Slack Technologies hasn't recovered from debt at this point, it is still showing positive dynamics. In particular, the company's sales increased by 82%. Mr. Rosenstreich says that Slack Technologies entered the market at the right time. Even though its stock is currently overpriced because of the concerns related to a posible drop in the demand for the company's stock. Still, this is already a popular brand, which makes it possible to make good money with that.On top of that, risky assets have always been popular due to their substantial potential reward.
Peter Rosenstreich is a famous banker, Head of Market Strategy at Swissquote Bank (Switzerland), and the author of a popular book on forex trading called "Forex Revolution: An Insider's Guide to the Real World of Foreign Exchange Trading".
