Splunk Drops After CTO Departure, Downgrade By Investing.com

By Christiana Sciaudone

Investing.com — Splunk (NASDAQ:SPLK) dropped more than 7% after the company lost a key executive and got a downgrade.

Tim Tully, chief technology officer, is resigning May 4 to join venture capital firm Menlo Ventures. KeyBanc lowered the stock to sector weight from overweight, noting his departure comes on the heels of several high level exits over the past year, according to StreetInsider.

Shares of the software company rose to a record last year, only to come back down some 65% to the same level from a year ago. The heads of sales and security also recently left the company amid increasing competition and a transition to Splunk Cloud Platform, KeyBanc’s Michael Turits said. 

“Competitive risk has also been at its highest point in years,” Turits said.