By Kim Khan
Investing.com - Slack Technologies (NYSE:WORK) sank in after-hours trading Monday after a company statement soured earlier exuberance about IBM (NYSE:IBM) using its work communications and messaging software.
Shares of Slack fell nearly 8% postmarket.
The stock had surged more than 15% in today’s session following a report about IBM (NYSE:IBM) switching all its employees to Slack.
Business Insider reported that Dow component IBM will have 350,000 employees using Slack, becoming the company’s biggest customer.
But Slack stock was halted with about 10 minutes to go in trading.
The company then issued an SEC filing after the bell.
“On February 10, 2020, a Business Insider article was published about Slack Technologies,” the company wrote in an 8K filing. The article stated that International Business Machines (NYSE:IBM) Corporation (“ IBM ”) purchased Slack for all of its employees worldwide and further that IBM is Slack’s largest customer to date.”
“IBM has been Slack's largest customer for several years and has expanded its usage of Slack over that time,” the company said. “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.”
That was enough to temper the enthusiasm about the report as investors tried to lock in earlier profits from the day, sending shares sharply into the red.