Security

Atlassian Stock Rallies As Slack Stock Gains On Remote Work Tools


Atlassian stock and Slack Technologies (WORK) both stood out Thursday as enterprise software companies that are outperforming amid coronavirus-driven market volatility. Slack stock and Atlassian neared new buy points.




X



Atlassian (TEAM) rose 2% to close at 146.51 on the stock market today, near a cup-with-handle 149.80 buy point. In earlier trades, the stock hit 152.15.

Founded in Sydney in 2002, Atlassian is incorporated in the U.K. It makes collaboration software for developers and tech departments, and owns a Relative Strength Rating of 93 out of a possible 99. Atlassian reports fiscal third-quarter earnings on April 30.

Meanwhile, Slack stock gained 4.8% to 29.38 on Thursday, nearing a new buy point of 30.07. Slack holds a Relative Strength Rating of 90.

A provider of business messaging services, Slack went public on June 20 last year. Slack stock popped more than 60% to 42 from its direct listing price of 26 on the first day of trading. Shares then swooned, making it one of 2019’s most disappointing tech initial public offerings.

Atlassian Stock: Microsoft GitHub Purchase

From a technical view, Slack stock might appear as a double-bottom but it’s not. Rather, it has the look of a first-stage bottoming base.

Atlassian and Slack share a common foe. That would be Microsoft (MSFT), the subject of this week’s IBD New America feature.

Microsoft in 2018 acquired GitHub, a leading software development platform, for $7.5 billion in stock. Microsoft also mulled buying Slack in 2016, according to reports.

In a surprise move, Atlassian exited the workplace messaging space in mid-2018. Slack acquired intellectual property from Atlassian, which made a small investment in Slack. Since then, Atlassian and Slack have partnered in the workplace collaboration market.

See also  Longer jail time for terrorists could backfire, says watchdog | Politics

Slack Stock Rebounds From Microsoft Teams Pressure

Growing competition with Microsoft Teams chat software was the big reason Slack stock fell following its 2019 direct listing.

But the sudden shift to employees working from home amid the coronavirus emergency has increased paid subscriber growth at Slack, analysts say.

“Management views the crisis as an accelerator of the (workplace collaboration) category, with what would have otherwise taken three to seven years being shortened into several weeks,” Credit Suisse analyst Brad Zelnick said in a recent note to clients.

He added: “Increased engagement and usage stats of (existing) customers remain an encouraging data point as it relates to sustainability beyond the current crisis.”

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

YOU MAY ALSO LIKE

IBD Live: A New Tool For Daily Stock Market Analysis

Find Compelling Growth Stocks With IBD’s Stock Of The Day

View Breakout Stocks & Technical Analysis

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists

Get A Free Trial Of IBD Leaderboard





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.