Slack, Uber, Lyft Disappoint While Beyond Meat Sizzles
Slack, Uber, Lyft Disappoint While Beyond Meat Sizzles
Slack, Uber, Lyft Disappoint While Beyond Meat Sizzles
Despite unresolved US-China trade tensions and speculations of a Fed rate cut, the S&P 500 (SPY) gained by a modest 1.3% last month. However, some of the unicorn stocks that went public this year didn’t have a great July. Slack (WORK) fell 10.9%, while Uber (UBER) and Lyft (LYFT) ended the month down by 9.1% and 7.4%, respectively. Conversely, Beyond Meat (BYND) continued to sizzle, gaining 22.3% in July.
On Wednesday, the S&P 500 lost 1.09% as the Fed cut rates by 25 basis points but dampened expectations of further rate cuts. Trump was quick to express displeasure over the Fed’s decision, as he was expecting a big rate cut. Although the Nasdaq (QQQ) and industrial-heavy Dow Jones (DIA) gained 2.1% and 1%, respectively, in July, they both fell 1.2% on Wednesday.
What’s bothering Slack
While Slack has been on a downturn since the beginning of July, that fall accelerated when Microsoft (MSFT) announced that Microsoft Teams, a Slack competitor, had reached 13 million daily active users. The stock then briefly rose when Slack announced a new update that makes its web and desktop versions faster. However, the stock couldn’t maintain that rally and fell sharply toward the end of the month when a technical glitch led to a Slack outage.
Why Uber and Lyft fell in July
Ride-sharing giants Uber and Lyft also had a bad July, primarily due to regulatory issues, slowing growth, and layoffs. Uber laid off 400 marketing team members, raising questions about the company’s growth potential and financial position. Lyft lost its chief operating officer.
Why Beyond Meat gained in July
Meanwhile, plant-based meat company Beyond Meat continued its dream run. After gaining 54% in June, BYND gained 22.3% in July. On July 29, BYND released its second-quarter results, beating analysts’ revenue estimate but falling short of their earnings estimate. The company also raised its full-year guidance.
What’s next for Slack and others?
Slack and Uber are set to release their second-quarter results on August 7 and 8, respectively. As the first month in the second half of the year bites the dust, another unicorn is getting serious about going public. WeWork is expected to have an IPO in September.
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