Sarah is becoming CEO of NextDoor. A loss for SQ.
Down nearly 5% after-hours. I recently sold at $86 and starting to consider if I want to get back in or not.
It’s only Wednesday. And my portfolio is already down 7% overall. Let’s grab some popcorn and some single malt people.
Bear will be heartbroken.
(I am kind of heartbroken too)
Hmmm…just seen this. Not good for the short term share price. Not saying this is a total game changer, but it’s changed the game somewhat.
She seems to be stepping down to take over a CEO position.
Which implies she’s making an upward career move, and there’s no fundamentally problematic issue with SQ causing her to leave. Seeing that she’s been there since before the IPO, and led took SQ from private to public, it’s a logical move for her. So, Congrats!
While somewhat concerning, the CFO isn’t quite as important as the CEO and many other execs that set technical direction or decide marketing strategy, etc. Not saying they’re not important, just not as critical to company direction. NFLX has been through at least 2 CFOs since it went public, and that has affected the stock price not a bit over the last decade from what I can tell.
The short term hit seems to be a good buying opportunity while others are running scared.
Bear will be heartbroken.
You’re not wrong, Speedy. This is a huge blow to SQ. Hopefully they bring in somebody great, but it will take a few quarters to build my confidence back up.
While somewhat concerning, the CFO isn’t quite as important as the CEO
At Square, it has been quite the opposite, in my experience. She’s lead the company and the charge. She’s been there full time while Dorsey splits time with Twitter.
Down nearly 5% after-hours…
And now down over 10% after hours.
She seemed like a very intelligent, articulate, capable, CFO, but is her leaving worth a 10% reduction in stock price? I don’t think so. I know after hours prices don’t always hold, and by tomorrow, this 10% after hours reduction could change (in either direction!). But it’s not like she’s leaving under a cloud of financial uncertainty, she did a great job and is being rewarded by getting offered the top spot at another company. The only uncertainty to SQ is who they replace her with, but I think there are many capable folks up to the task, SQ just has to make a good choice and this should be a non event (long term).
So SQ has dropped from $100 to $70 in just over 2 weeks, that’s quite a quick 30% haircut! Yes, it may have gotten ahead of itself, but this is an example of how fast these stocks can move (in either direction).
I still believe in SQ, and will have a decision to make tomorrow. For me, that decision is whether to add (again) or just hold. If it’s still down near $70 or below, I’ll probably add, if above that, I’ll hold.
I opened a very small starter position in SQ yesterday just to make sure it was truly “on my radar.” I anticipated a drop (it had outrun itself, frankly) and wanted to make sure I was watching, but I wasn’t at all expecting Sarah Friar’s future departure. That changes things… Bear’s point about Dorsey splitting his time is very relevant. Sarah Friar’s replacement can’t possibly fill her shoes – they lack the time, shared experience and context. But they might bring a new vision and voice, so this could be a good thing.
I may end up adding that next chunk sooner than expected.
I wouldn’t buy or add yet.
I have had a 60.00 limit order in for a few weeks now. Really has rolled over with so many other high growth tech names.
This already had a ways to go, but now such an important figure leaving is going to really trigger some bigger selling.
Like so many others, stock price still up huge YTD.
I’d be patient with all these names on this board although my 39 limit order did hit on NTNX this morning.
Sarah Friar was a good one, more than just a good CFO leaving a company. She was more co-CEO it seemed with Jack, especially with him splitting time between Twitter and Square. This one hurts, but I don’t think it changes long-term story. Still…it stings.
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