Is Slack Really Worth $20 Billion?
The office collaboration company's stock fell on its second trading day.
Slack shares opened at $38.50 on Thursday, the company's first day of trading, up 48 percent from a $26 reference price Wednesday. That massive win gave the San Francisco-based tech startup a $19.5 billion valuation, almost triple its private valuation of $7.1 billion. That seems like a high number, considering that Slack itself estimated the market for its industry (workplace collaboration services) at $28 billion in its offering paperwork.
Friday saw the startup fall back to earth, as Slack stock fell 3.63 percent to 37.22. However, the true question about Slack's value won't be determined in its first week of trading (just as Uber's fate wasn't decided by a disastrous IPO).
The Entrepreneur Index™ as a whole was down slightly, falling 0.13 percent as Amazon, Comcast and Adobe Inc. saw losses on the day. The biggest declines on the day came from D.R. Horton (-2.28 percent), Boston Properties (-1.9 percent) and FedEx Corp. (-1.89 percent).
On the other side, Alexion Pharmaceuticals rose by 2.83 percent Victoria's Secret parent company L Brands rose by 2.8 percent on Friday followed by two clothing companies in Victoria's Secret parent company L Brands (2.8 percent) and Ralph Lauren Corp. (2.47 percent).
The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.
Entrepreneur Editors' Picks
Online Scams Are More Sophisticated Than Ever. Here's How to Shop Safely on Black Friday and Cyber Monday, According to a Cyber Intelligence Expert.
This Guy Saved Barbie From Cultural Extinction. He Did It by Asking One Big Question.
The Top 5 Hot Franchise Categories for 2023, According to One Industry Expert
Why Can't We Resist Black Friday and Cyber Monday? A Behavioral Economist Explains the Psychological Forces That Make Sales Irresistible.
I Couldn't Sleep. I Obsessed Over My Failures. Then I Found the Weirdest Cure.
This Pitch Scored a $250,000 Investment — But It Almost Didn't Happen
Employees Were Demanded to Go Home. Here's How We Invite Them to Come Back.