Slack shares set a new trading low Wednesday after The Wall Street Journal suggested the stock is running too hot as there’s little sign that companies are adopting the messaging platform exclusively.
"The trouble is that Slack hasn’t yet shown that companies are adopting it exclusively. As a merely supplemental platform, its benefits have limits," the Journal's Lauren Silva Laughlin wrote.
"Checking yet another form of communication can cause further disruptions at work and cut even more into productivity," she added.
Slack Technologies (NYSE:WORK) fell 1.8% to $29.37, though it had been trading as low as $28.50.
Slack went public in June to much fanfare as it rallied 50% above its IPO price of $26, prompting some on Wall Street to suggest that the message platform had warranted a premium valuation.
"With high gross margins and a clearly sticky product, we're quite confident that (Slack) will grow to be a 30%+ (free cash flow) margin business with scale,” Canaccord Genuity said last month.
The move lower in Slack arrives just a week after the company was buoyed by news that Yale University had acquired a stake.
According to a 13-F securities filing for the second quarter, the university purchased 437,667 shares with a holding value of $16.4 million at the time of filing.
Slack has an average price target of $38.92, according to consensus estimates compiled by .
