Why Splunk Shares Are Sliding Today

Splunk Inc (NASDAQ:SPLK) is trading significantly lower Monday after the company announced that CEO Doug Merritt will step down.

Merritt will remain with the company in an advisory role to ensure a smooth transition. Splunk appointed Graham Smith, chair of Splunk’s board of directors, as interim CEO.

"As the Board and I considered how to best position Splunk for long-term success and continued growth, we determined now is the right time to transition to our next phase of leadership - in particular, the Board is focused on identifying a leader with a proven track record of scaling operations and growing multi-billion dollar enterprises," Merritt said.

The company also issued preliminary fiscal 2022 third-quarter revenue guidance. Splunk expects total revenues to be approximately $660 million versus the estimate of $646.38 million, representing 19% year-over-year growth.

Splunk is set to announce its fiscal 2022 third-quarter financial results after the market closes on Dec. 1.

See Also: Where Splunk Stands With Analysts

SPLK Price Action: Splunk has traded as high as $207.40 and as low as $110.28 over a 52-week period.

The stock was down 16.60% at $139.87 at time of publication.