Slack Poised to Join Cloud Valuations Soaring Into Thin Air
More than half a dozen software firms have enterprise values that are greater than 20 times expected revenue.
Slack could join the 20 times revenue club.
Photographer: Justin Sullivan/Getty Images
Slack Technologies Inc. couldn’t have picked a better time to go public. Investors have lost their minds about software companies.
Earlier this year, I wrote about how stock buyers were willing to pay handsomely to own shares of fast-growing companies that sell cloud software to businesses. As investors had grown antsy about the FAANGs — the elite technology superpowers such as Apple Inc. and Google parent company Alphabet Inc. — the software PUTIN stocks, as I semi-apologetically called them,1were ascendant. Since then, investors have warmly greeted new stock listings by even more business software firms including Zoom Video Communications Inc., Pagerduty Inc. and CrowdStrike Holdings Inc.