Why Splunk Shares Are Sliding Today

Splunk Inc 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.