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Slack Is Going Public Without an IPO – How a Direct Listing Works

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Re: Slack Is Going Public Without an IPO – How a Direct Listing Works

#31

Post by sixhobbits »

> In an IPO, SEC rules typically restrict shareholders from selling shares until six months after the offering. A direct offering makes it much easier for employees and early investors to cash out as soon as the first day of trading. This can be a big help for investors in companies that have waited to go public, which many of the best-known tech companies have been doing for years

Is it wrong to interpret this as other people expecting the bubble to pop soon and wanting to pass the bag sooner rather than later?

Re: Slack Is Going Public Without an IPO – How a Direct Listing Works

#32

Post by nodesocket »

ericabiz wrote: post #29
nodesocket wrote: post #4

Earlier quoted context omitted.

Sure it's up 50% from the "reference price", but publicly for you and me retail investors we had NO chance at that gain. You'd have been super lucky to get some shares at where it opened at $38.88 (12:08 EST). It immediately shot up to daily high of $41.95 which is most likely where retail trades would have executed at (assuming you used a market order, which you never should). Always buy with limit orders. See the f…

I set a buy order yesterday through Schwab and got a notification today that it executed at $38.50, which as far as I can tell was the retail opening price. It executed at 12:08 Eastern.

Nice work. Was it a market order or limit? If limit, what did you set as the limit price? I waiting and eventually executed my order at $40.36.

Re: Slack Is Going Public Without an IPO – How a Direct Listing Works

#33

Post by b_tterc_p »

mlthoughts2018 wrote: post #24
lotsofpulp wrote: post #12

Earlier quoted context omitted.

The current stock price is the value of one stock, selling on a specific date, at a specific time, with a specific number of shares outstanding, at a certain trade volume, as compared to other options one can purchase in the market. Multiplying that stock price by the number of outstanding shares provides a number known as market capitalization, but it is not THE value that an organization provides to society.

That’s a bit disingenuous. Efficient market theory gives clear reasons to believe that rational investors would produce a market valuation of the stock, based on net present value of future income streams, that reflects marginal utility in putting a dollar into the stock vs not. Obviously, rational & efficient market behavior breaks down in reality. But tell me, how does it break down exactly? What alternative measur…

you can suggest that true stock values are both unknowable and that the market is a weak approximation at the same time. Requiring one to know the true answer to challenge the status quo isn’t all that different from poor religious reasonings.

The stock market exhibits massive changes without much new information except information about the actions of other investors. You can similarly believe something is basically worthless (e.g. crypto) and simultaneously believe the price will not go down in the next long while due to investor behavior. The opposite is especially true for non dividend stocks.

Re: Slack Is Going Public Without an IPO – How a Direct Listing Works

#34

Post by erikpukinskis »

sixhobbits wrote: post #31

> In an IPO, SEC rules typically restrict shareholders from selling shares until six months after the offering. A direct offering makes it much easier for employees and early investors to cash out as soon as the first day of trading. This can be a big help for investors in companies that have waited to go public, which many of the best-known tech companies have been doing for years Is it wrong to interpret this as ot…

Yes. You are imputing intent from action, which is often wrong.

Another interpretation: they don’t care for the terms underwriters are offering, and think a better price can be set offering shares directly to investors. And that a good price serves everyone well.

Google had a rough go of it, IIRC, and there is some risk that institutional investors will sit the round out without their banking partners running the show.

Re: Slack Is Going Public Without an IPO – How a Direct Listing Works

#35

Post by cdumler »

sixhobbits wrote: post #31

> In an IPO, SEC rules typically restrict shareholders from selling shares until six months after the offering. A direct offering makes it much easier for employees and early investors to cash out as soon as the first day of trading. This can be a big help for investors in companies that have waited to go public, which many of the best-known tech companies have been doing for years Is it wrong to interpret this as ot…

That is possible, but in theory there has been due diligence to verify the company as an on-going concern. Normally the goal of going public is to let those who took the risk in the beginning to get a payout, given that they have had their funds locked up all this time. Those who choose to invest now are taking the risks for access to future returns.

Re: Slack Is Going Public Without an IPO – How a Direct Listing Works

#36

Post by erikpukinskis »

mfatica wrote: post #16
opportune wrote: post #15

Earlier quoted context omitted.

Per user it is probably a few pennies per month if they are smart about it. Which is basically nothing as a percent of a single unit sale (subscribing user) compared to the marginal cost of selling cars

If it's a few pennies for month how are their operating expenses greater than their revenue? Have you even looked at their public filing or are you just making assumptions?

Because they’re paying 1000 engineers to shoot for the moon, to justify the next valuation. In a fancy office.

To service their order book, they just need a skeleton crew. And the order book should be the bottom line for the bulk of investors.

Re: Slack Is Going Public Without an IPO – How a Direct Listing Works

#37

Post by supremerumham »

busymom0 wrote: post #23
pimlottc wrote: post #19

> The ticker symbol? WORK. I’m curious how symbols are assigned. Most companies have symbols that are similar to their names. Can companies just choose anything they want? Or do you have to be a big player with connections to score a vanity symbol like this one?

https://slate.com/news-and-politics/2003/09/how-do-companies... > “The ball’s pretty much in the company’s court, as long as its choice isn’t already in use and won’t offend anyone’s delicate sensibilities. The NYSE requires that companies submit their symbol requests at least 20 days before they mail out notification to shareholders and that they list a first, second, and third choice. The exchange rarely gives a th…

Another example of a name and symbol being different is Salesforce with a symbol of CRM

Re: Slack Is Going Public Without an IPO – How a Direct Listing Works

#38

Post by mlthoughts2018 »

b_tterc_p wrote: post #33
mlthoughts2018 wrote: post #24

Earlier quoted context omitted.

That’s a bit disingenuous. Efficient market theory gives clear reasons to believe that rational investors would produce a market valuation of the stock, based on net present value of future income streams, that reflects marginal utility in putting a dollar into the stock vs not. Obviously, rational & efficient market behavior breaks down in reality. But tell me, how does it break down exactly? What alternative measur…

you can suggest that true stock values are both unknowable and that the market is a weak approximation at the same time. Requiring one to know the true answer to challenge the status quo isn’t all that different from poor religious reasonings. The stock market exhibits massive changes without much new information except information about the actions of other investors. You can similarly believe something is basically…

> Requiring one to know the true answer to challenge the status quo isn’t all that different from poor religious reasonings.

Dismissing something obvious and derived by a large-scale aggregation of views in favor of something contrarian and unsubstantiated is much more similar to religious arguments.

Re: Slack Is Going Public Without an IPO – How a Direct Listing Works

#39

Post by Gibbon1 »

youeseh wrote: post #7

I know this is an apples and oranges comparison, but I just find it fascinating how value is derived in society. The current stock price, Slack's market cap is half of Tesla's. And, a lot of people think that Tesla is overvalued.

Recently read an article comparing FAANG companies to General Motors / General Electric in the 1950's.

FANNG's market valuations are vastly larger than their knock down economic effects on the rest of the economy compared to GM/GE in the 1950's.

Re: Slack Is Going Public Without an IPO – How a Direct Listing Works

#40

Post by myvoiceismypass »

nodesocket wrote: post #4
satya71 wrote: post #3

50% pop, not bad. Underwriters got $0 of that pop, very nice for whoever pounced early.

Sure it's up 50% from the "reference price", but publicly for you and me retail investors we had NO chance at that gain. You'd have been super lucky to get some shares at where it opened at $38.88 (12:08 EST). It immediately shot up to daily high of $41.95 which is most likely where retail trades would have executed at (assuming you used a market order, which you never should). Always buy with limit orders. See the f…

I set a limit order at 11:42 am (robinhood) today for $39.50 and it executed at 12:08 for $38.50
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