Slack is struggling with the increasingly fierce competition between Microsoft Team and Facebook’s Workplace.
Editor’s note: This article is from WeChat public number “American Stock Research Institute” (ID: meigushe), by Matthew Frankel, CFP, Motley Fool.
Last week, Soros Fund Management, a legendary investor named George Soros, announced the second quarter 13F document.
Soros buys Slack
The document shows that Soros purchased nearly 500,000 shares of Slack (WORK) in the second quarter at an average price of $37.5 per share. The fund acquired Slack shares for $18.7 million. Slack only accounts for 0.44% of the total holdings of the fund.
Slack performed well in his first public appearance in June. The company does not conduct IPOs in the traditional way and is listed through direct issuance. The opening price of the stock is $38.5, which is much higher than the reference price of $26 on the New York Stock Exchange. However, the stock has been in a downturn in the third quarter. So far, the stock has fallen 18.7%. On Tuesday, Slack closed at $30.5, down 2%. Softbank reported Slack’s earnings during the same period, but due to Slack’s share price decline, the company’s earnings may be reversed this quarter.
Slack is struggling with the increasingly fierce competition between Microsoft Team and Facebook’s Workplace. Last month, Microsoft Team beat Slack on daily active users. However, Slack provides an update. In response to competition, the company accelerated the development of desktop and network versions. Facebook is also preparing for competition by redesigning office products.
Looking at large technology stocks?
Soros Fund Management’s 13F document also shows that the fund bought the Invesco QQQ Trust (QQQ). QQQ has a large number of businesses in the technology field. QQQ’s exposure is $217.6 million, accounting for 5.1% of the Soros Fund’s total investment portfolio. The document also showed that the fund purchased 65,750 shares of Google (GOOG) (GOOGL) during the quarter. As of June 30, the market value of Google stocks under the Soros Fund was $71.2 million. Slack has a partnership with Google. Slack also integrates with Google Suite. Google accounts for about 8.5% of QQQ.
In addition to Google, Soros Fund is in this seasonIt will also do more with Symantec (SYMC). As of June 30, the fund purchased approximately 1.9 million shares of the company, valued at $40.3 million. The fund reported that its shareholding in RedHat (RHT) increased by 59% during the quarter. Subsequently, IBM announced the completion of the acquisition of Redhat on July 9. eBay is also a new player in the fund’s portfolio this quarter.
George Soros’s huge investment
Free Broadband (LBRDK) remains the largest investment in Soros Fund Management’s portfolio. However, the fund sold some shares in the second quarter. As of June 30, Liberty Broadband had a market capitalization of $755.6 million, accounting for 15.5% of the fund’s portfolio as of June 30. The fund continues to be optimistic about VICI Properties (VICI). The Soros Fund bought more shares during the quarter. As of June 30, the fund’s investment in the real estate company was $452.6 million. VICI Properties accounts for 10.6% of the fund’s portfolio.
In the quarter, Soros Fund Management Inc. increased its short exposure to the S&P 500 index. The fund purchased 17,000 SPDR S&P500 ETF (SPY) put options during the quarter. Soros is not the only one who is pessimistic. JPMorgan Chase has said that the market may collapse in the current quarter.