Why Splunk is Down 18.9% This Week
Shares of Splunk (NASDAQ: SPLK) had fallen 18.9% this week as of Thursday's market close. The reason was very clear: On Monday, the company announced CEO Doug Merritt would be stepping down after six years on the job. Chairman Graham Smith will take over as interim CEO, as the company conducts a search for its next leader.
The market never likes to see a CEO step down, or any sort of uncertainty in the C-suite. Management shuffles could indicate that the board believes the company is underperforming and needs to correct current problems.
On the other hand, Splunk also preannounced solid third-quarter results, so there are definitely mixed messages here.
Source Fool.com
