Slack (NYSE:WORK) is in the news Friday as concerns of increasing competition keep WORK stock down.
The problems for WORK stock seem to stem from its recent earnings report and other announcements dropped at the same time. The company’s earnings report notes that it is withdrawing its calculated billings for fiscal 2021.
News of Slack withdrawing its calculated billings for fiscal 2021 seems like a strange move for the company. It’s been performing well through the novel coronavirus with earnings and revenue beating estimates during the quarter.
Another bit of news worth noting is Slack taking threats from Microsoft (NASDAQ:MSFT) seriously. A separate announcement has is teaming up with Amazon’s (NASDAQ:AMZN) Amazon Web Services to bolster its own services.
Investors seem to be taking this as a sign that the company isn’t confident about tackling Microsoft’s rival products in the work communications category. That, coupled with the decision to withdraw its calculated billings, could be causing unease in WORK stock investors today.
Stewart Butterfield, co-founder and CEO of Slack, said this about the team up with Amazon.
“Strategically partnering with AWS allows both companies to scale to meet demand and deliver enterprise-grade offerings to our customers. By integrating AWS services with Slack’s channel-based messaging platform, we’re helping teams easily and seamlessly manage their cloud infrastructure projects and launch cloud-based services without ever leaving Slack.”
WORK stock was down 14.1% when markets closed on Friday.
