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

Slack (WORK) - Get Report 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 (UBER) - Get Report 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?"