Packy McCormick: prediction

Transcript context

…Totally. We might as well just get right into it. What was the disconnect here? Because this is crazy. Every other SaaS company, especially a work-from-home stock has been off to the races. What has kept Slack so beaten down for so long? The biggest number one thing that kept Slack beaten down is just the threat of Microsoft teams. Not just the spectre of Microsoft teams, but Microsoft teams and Microsoft generally has gone after Slack by name. To hear Stuart talk about it, that's because if Slack threatens email, then Outlook is threatened, and then the whole Microsoft Suite is threatened. They’ve put particular emphasis on the fact that they're crushing Slack. Slack has 12 million users or whatever and then Microsoft reports that they're just flying by Slack. When they released their charts showing that they're passing Slack, atypically they put Slack’s name right on the chart and call them out. According to Stuart, nobody except maybe Larry Ellison at Oracle a couple decades ago ever would have done calling out a competitor by name. This is a real threat that Microsoft felt again according to Slack. They put everything they had going after Slack. I think you can look at the numbers a couple of different ways. You can either say Slack is growing faster than 49 of the 54 companies, or Slack and Zoom are really the two most public facing or consumer-y of all of the work from home stocks. Zoom is growing at 300%. Slack is only growing at 49%. What's wrong with this company? That's one of the reasons that I love it so much long-term. I think switching costs and moats, in general, are these double-edged swords. Zoom doesn't really have a moat, but it's really easy to hop on a Zoom. We don't have a shared Zoom account. We hopped into Zoom in one link. It's really easy for Zoom to grow. Whereas Slack, you have to set up an org. You have to build your integrations. You have to do all those things that pay off over time. And there's no reason why anyone would join Slack, let alone join Slack as a paid member unless you're part of a company. Whereas, especially post-covid, there are a million use cases, like my parents have a paid Zoom account now.…

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