What: Shares of Tableau Software Inc. (NYSE: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.
Jeremy Bowman has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.