- Snap (NYSE:SNAP) is down 10.9% after its latest executive departure, the exit of Chief Financial Officer Tim Stone after just eight months on the job.
- He leaves behind much of his $20M sign-on bonus, and “for a talented CFO to leave after only eight months suggests he or she was surprised with what they found,” says Peter Crist of executive search firm Crist|Kolder.
- The departure also follows this week's departure of Jason Halpert, head of human resources.
- RBC's Mark Mahaney has downgraded to Sector Perform from Outperform, with an eye more to Stone's exit than the guidance hints the company's giving. Valuation's not compelling, he suggests, and now it's about whether management can execute a turnaround, though he maintains an $8 price target (now implying 37% upside).
- Pivotal's Brian Wieser (Hold, $6 target) thinks reports that Evan Spiegel has been increasingly centralizing control could be driving the heavy turnover in the exec ranks, though a 50% drop in share price over six months could affect employee thinking about the future as well.
- Now read: Even With Improving Financials, Snap's Future Still Looks Bleak
Original article