Why I'm Selling Splunk Stock and Buying Dynatrace and Elastic Instead
Things just took another turn for the worse for Splunk (NASDAQ: SPLK) stock. Already struggling as the company tries to manage its software platform's transition to the cloud, Doug Merritt -- the CEO since 2015 and who oversaw the company's growth from $450 million a year to nearly $3 billion today -- suddenly resigned in November. The stock price is now down nearly 35% in 2021 and has fallen all the way back to where it was in 2018 and 2019.
The recent executive leadership shake-up has pushed me to put my Splunk stock on the chopping block. It's been a profitable journey overall, as I've been a shareholder for years, but Splunk has fallen behind some of its peers in the data analytics and cloud observability space. Here's why I'm adding Elastic (NYSE: ESTC) stock to my holdings and buying more Dynatrace (NYSE: DT) to replace my Splunk holdings.
Image source: Getty Images.
Source Fool.com