Why Elastic Stock Fell 24.2% in January
Shares of Elastic NV (NYSE: ESTC) plummeted 24.2% in January, according to data provided by S&P Global Market Intelligence. The enterprise search and data company announced a transition for its CEO and got pushed down by the broad sell-off in growth stocks last month.
On Jan. 12, Elastic put out a press release announcing its founder and CEO, Shay Banon, would be stepping down and resuming his role as chief technology officer. Current chief product officer Ash Kulkarni will be taking over as CEO. Shares of the stock sold off 8% the day following the announcement. It is unclear why the company decided to make this change, but investors tend to not like uncertainty, so it is no surprise the stock is down on the news.
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Source Fool.com
