I sold due to the co-founder stepping down and the decline in growth although I liked the longer term story.
I do think the co founder leaving spooked the market and was at least partially responsible for the after hours drop yesterday.
However, one of the things I liked on the conference call is that they said that most of his responsibilities had already been transferred to two of his main deputies, both of which had been with the company for (I think they said) 7 years, and they had been preparing for the change for quite some time, and that there was no search planned to bring anyone from the outside in to fill the role. They also said the co-founder would continue to be involved on a more limited basis.
I don’t think it is too unusual for tech guys to always want to move onto something new and shiny, so while I would prefer for him to have stayed with the company, I didn’t view it as too big a red flag, especially after hearing what they said on the conference call.
-mekong