One of the most lauded workplace communication apps is making headlines…
Its large-scale security resets may indicate some liability.
Reports show that Slack, one of the most popular platforms for enterprise messaging, will reset passwords for 65,000 users. That’s a lot more than the company usually handles at one time, piquing the interest of some security professionals.
What’s Behind the Resets?
The company points out that a lot of the compromised accounts are the result of external malware or third-party data breaches.
However, there’s news that some of Slack’s password resets apply to some of the company’s largest contracts over $100,000 apiece, raising questions about whether this new contender is regulating security well enough for these customers, and what the unprecedented password protection effort represents.
Slack Moves
None of this has been particularly good for Slack stock, which has fizzled to around $33 after debuting at over $38 in June.
Back then, Slack’s direct listing got investor attention when the company decided to bypass a traditional initial public offering in an attempt to cut out the middleman. The direct listing strategy allows the company’s shareholders to simply register their shares on the public market, without going through Wall Street banks. There’s no underwriting, and with some $800,000 in hand, Slack didn’t have to raise more money.
Regardless of its security strategy, many are still bullish on Slack’s stock: Slack projects $389 million profits for the year ahead, but experts warn of volatility.
