The indices are hiding just how badly some of the highflying momentum stocks are being crushed out there. Cloud names especially are being hit hard, with many like TTD, OKTA, TWLO down double digit percentages.
I’ve started a position in WORK here. The stock is down another 10% today, and it’s been killed since it came public just a few weeks ago. I do think Slack is a new de facto standard for communications in the enterprise and that it will eventually become a consumer product too. It’s very expensive, trading at 15x next year’s sales estimates but unlike most of the other cloud names that are being killed today, it’s got the potential to become a household name. I plan to build it up into a pretty big-sized position in the portfolio, but won’t do all my buying today. Maybe 1/3 or more of a full-sized position though.
I also nibbled a little SQ and a little SEDG.
On another note, I’m open to suggestions on how to caption this photo when I tweet it out later today: