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What Jim Cramer Doesn't Like About Slack's Direct Listing

Slack is going public Thursday. However, the company isn't taking the more traditional route of an Initial Public Offering (IPO). Instead, the company is going public through a direct listing. That means that the company did not get the more traditional night before pricing. Instead, the New York Stock Exchange--where the company is listed--issued a reference price for the company. The reference price was announced after the bell Wednesday and the NYSE set it at $26. But there's one thing that Cramer doesn't like. "I picked $40 as a target because I couldn't tell any idea what the price discovery is. Now you can say, well, Jim, uh, with Uber you had price discovery and it went bad, but...the $26 reference is what I don't like, it's like, what does that mean? How did they come up with that? Did they flip a coin?" Related. Slack's Direct Public Offering on Thursday: Don't Expect a Zoom-Like Ascent More from Cramer Today Full Replay: Jim Cramer Tackles the Fed, Oracle and Slack Going Public Why Jim Cramer Thinks That Slack Is a 'Red Hot' Jim Cramer: How Oracle's Strategy Is Appealing to Other Companies 3 Things That Investors Need to Watch Ahead of Slack's Direct Listing

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