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Slack stock rockets, then falls back, after erroneous report about IBM relationship
Shares in Slack Technologies Inc. surged as high as 21% today after a report claimed that International Business Machines Corp. had picked the company to exclusively provide its 350,000 employees with workplace collaboration tools.
The problem: IBM isn’t a new Slack customer. The spike in Slack’s share price came as a result of Business Insider claiming, falsely as it turns out, that the company had newly signed IBM as a customer.
Indeed, no doubt because of the huge stock jump, Slack felt it necessary to issue a Form 8-K filing with the U.S. Securities and Exchange Commission to rebut the report. “IBM has been Slack’s largest customer for several years and has expanded its usage of Slack over that time,” the filing stated. “Slack is not updating its financial guidance for the fourth quarter of the fiscal year ended January 31, 2020 or for the fiscal year ended January 31, 2020.”
The share spike and filing resulted in trading in Slack shares to be halted. The halt was removed in after-hours trading and Slack stock dropped more than 7%.
Slack is in a serious battle with Microsoft Corp.’s Teams for workplace collaboration tools. It has had a hard time as Microsoft Corp. has surged ahead in adoption and user numbers. That said, the company doesn’t deserve to be targeted by inaccurate news either.
Image: Slack
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