Entering text into the input field will update the search result below


Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.


  • $WORK recently performed a direct listing, an unusual process whereby the Company did not place shares to raise capital but instead opted to trade without a traditional IPO.
  • Given the Company competes with $MSFT who is obviously larger, multi-product and globally entrenched in the enterprise market and has no sustainable technology advantage, we think $WORK has downside.
  • The stock is overpriced at current levels at an enterprise value of $13BN or over 20x 2019E sales.
  • Using 10x 2019E sales of $600-650MM plus cash generates a $6.5-7.0BN "fair" value, which we still think is obscene for a freemium enterprise software model with slowing net adds and growth, high burn and massive insider selling by the CEO CFO CTO Counsel and others.
  • This EV represents a price target range of $10-$15 per share, about 1/2 current levels.  We initiate $WORK with a SELL recommendation.

Note that $26 was an arbitrary "reference price" chosen by bankers who were paid $20MM to conduct the $WORK roadshow.  It was not an offering price where 128MM initially registered shares were sold to new investors.  It is not an "IPO price" or a real price level off which investors should base their decisions for recent demand for the stock.  Further, a few days ago, the Company filed with the SEC to fully unlock all 550MM+ shares for sale by insiders, posing significant near-term downside risk for $WORK shares.  We expect selling pressure to be immense for the balance of the year.

We intend to provide further commentary in $WORK in the near future in support of our SELL recommendation.

Analyst's Disclosure: I am/we are short WORK.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.