Slack stock price rose more than 15% in yesterday's trading session on news reports that International Business Machines Corp. (IBM) would use Slack's communication services for more than 350,000 employees.
However, the company moved quickly and denied such reports, erasing about 6% of the daily profit in the trading session after the hours.
Fundamental analysis: IBM confusion initiates a roller coaster ride
Business Insider told a story yesterday that technology giant IBM has decided to use Slack's communication platform to connect all its 350,000 employees. Understandably, the shares of Slack rose higher in view of the size of IBM and its pulling power.
Accordingly, Slack defeated his big rival, Microsoft Teams, to further expand his partnership with the largest client – IBM. The old-fashioned tech giant has been using Slack since the beginning of 2014.
According to Konrad Lagarde, the director of productivity and developer training at IBM, the company chose Slack because its employees liked using their platform.
The Slack platform allows users to send one-to-one direct messages, create private group chat rooms, add files to messages, and integrate with a variety of third-party online apps.
Later in the day, the San Francisco-based communications platform said in a SEC request: "IBM has been Slack's largest customer for several years and has expanded Slack's use at the time," rejecting practical news reports.
In lay terms, Slack says that IBM is already a customer and that the decision to extend Slack's services to all IBM employees does not automatically translate into new licenses for all 350,000 employees.
Technical analysis: a roller coaster ride
The SEC deposit reduced the enthusiasm of the market, as a result of which the Slack share price erased about 6% of its previous profit. Floppy stock price is currently traded at $ 24.94 in a premarket trading session, a decrease of $ 1.60 compared to yesterday's closing price of $ 26.54.
As seen in the daily chart above, the price burst higher to create a huge bullish candle yesterday. In addition, the move has pushed the price through the previous resistance at $ 24.28, which now paves the way for a test of higher levels.
If investors continue to buy Slack shares in the coming days, we may see a $ 28.74 test, which is a double-bottomed goal. The disadvantage is that the previous resistance at the $ 24 now serves as support.
Slack shares rose 15% higher on news that technology giant IBM will use Slack's communications services for all of its 350,000 employees. Slack denied such reports in a SEC filing later in the day, causing the shares to lose part of the previous gains.