Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Tableau Software Inc. Shares Shot Up Today

By Jeremy Bowman - Aug 23, 2016 at 11:55AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The business-software provider was gaining after hiring a new CEO.

Image source: Tableau.

What: Shares of Tableau Software Inc. ( DATA ) were surging today on news that the software company hired a new CEO, bringing on Adam Selipsky, a former Amazon.com executive. As of 11:08 a.m. EDT, the stock was up 11.9%.

So what: Selipsky joins the maker of office software products after directing sales and marketing for Amazon Web Services, that company's cloud-computing division, which is widely considered the leader in the fast-growing cloud market.  

Tableau has struggled this year as the stock plummeted more than 50% in February, when the company reduced its full-year revenue guidance. Selipsky will replace Tableau co-founder Christian Chabot, who will remain as chairman of the board. As Chabot said about the transition, "Adam is going to take Tableau to the next level. His experience in making AWS the world's leading cloud platform, his passion for servicing customers at a global scale, and his authentic team player attitude make him an extraordinary fit for Tableau. He is the right person to lead Tableau to the next stage of growth."

Now what: Analysts are hopeful that Selipsky will be able to help Tableau drum up business from large companies, though Tableau may be facing new competition from Selipsky's old employer, which recently launched its own business analytics program called Amazon QuickSight. 

It's rare to see a CEO hire propel a stock -- this much optimism seems to be bountiful on all sides for Selipsky. Jump-starting Tableau's growth will be his first assignment as profits have tumbled in the last year.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tableau Software, Inc. Stock Quote
Tableau Software, Inc.
DATA

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.