Why Splunk Stock Tanked 17% Today

Shares of data analytics firm Splunk (NASDAQ: SPLK) sank 17% today as of 12:15 p.m. EST. Solid third-quarter earnings for the company's fiscal 2022 (the three months ended Oct. 31) were overshadowed by the announcement that CEO Doug Merritt was stepping down effective immediately.  

Merritt served as CEO for six years and oversaw fantastic growth at Splunk, as well as kicked off the company's migration to cloud-based software services. But at this juncture, the company appears to be looking for leadership with more experience helming a large organization. Graham Smith, who has served as Splunk's chairman of the board since 2019 and was Salesforce.com's (NYSE: CRM) CFO until 2014, will be the interim CEO.  

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Source Fool.com