Slack plunges 11% after Microsoft's rival messaging platform extends its lead with 20 million daily active users
- Microsoft reported Tuesday that Teams, a messaging competitor to Slack, has 20 million daily active users.
- Slack plunged as much as 11% on the news. In October, Slack reported 12 million daily active users.
- In addition to having more daily active users than Slack, Microsoft also said that Teams users grew by more than 50% since its last report in July.
- Watch Slack trade live on Markets Insider.
That's 8 million more users than Slack, which reported 12 million daily active users in October.It's also a huge gain in the lead Microsoft already had over Slack. In July, the company announced that it had 13 million daily active users. That means that Microsoft has seen usage of Teams increase more than 50% in the last few months. Microsoft shares were relatively unchanged Tuesday.
Slack, on the other hand, has argued that while it doesn't have as many daily active users, the ones that do use the application spend more than nine hours a day using it, showing that people actually like using the product.
The company has also previously called out Microsoft for its business practices, calling it "surprisingly unsportsmanlike." Microsoft offers Teams for free to businesses that use Microsoft Office 365, which could mean that it's counting users that don't actually use Teams very often, Slack CEO Stewart Butterfield has claimed.
Slack is down more than 45% since spiking nearly 50% during its first day of public trading in June.
Slack has a consensus price target of $29.65 and nine "buy" ratings, 8 "hold" ratings, and two "sell" ratings from analysts covering the company, according to Bloomberg data.