Splunk Stock Forecast: Calm With a Chance of Volatility

Unless you’ve served time in some of America’s toughest corporations, you probably won’t know what the food chain looks like. At the very top of the hierarchy sits the Board Of Directors (BOD), a group of people who are elected to represent the interests of shareholders. Heading up this group of people is the Chairman of the Board. The Chief Executive Officer (CEO) of a corporation reports to the BOD, which is why it’s a conflict of interest when the CEO also happens to be the Chairman of the Board.

When a CEO leaves a company, our first inclination isn’t to think they’re leaving a sinking ship, especially if the company might be seen as underperforming. A lot can be implied from the climate surrounding the CEO’s departure, the language used to convey the departure, and the series of events leading up to the announcement. Look no further than what happened today with one of our enterprise AI portfolio companies, Splunk Inc. (SPLK).

Splunk’s Shakeup

The short story is that Splunk CEO Doug Merritt did exit, and Splunk shares did sell off, a plunge of about -18%. But if we put some cont