Please ensure Javascript is enabled for purposes of website accessibility

Why Alteryx Stock Was Sliding Today

By Jeremy Bowman - Feb 22, 2021 at 12:52PM

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 sudden departure of its Chief Revenue Officer fueled doubts about the cloud stock.

What happened

Things were going from bad to worse today for Alteryx (AYX 0.72%) as shares of the cloud-based data-analytics specialist were pulling back again. This time, news about the new Chief Revenue Officer's sudden resignation sparked the slide.

As of 11:55 a.m. EST, the stock was down 7%, falling alongside a broader sell-off in tech stocks as the Nasdaq was off 1.7%. 

A man scratching his chin while looking at a digital chart

Image source: Getty Images.

So what

In a filing after hours on Friday, Alteryx said that Chief Revenue Officer Dean Darwin had resigned after the company became aware of a social media post that was not "consistent with the company's values."

It also said that Darwin's duties would be assumed by other members of the organization.

The news comes as the company has been busy shuffling its executive team following the hiring of new CEO Mark Anderson last October. Darwin started with the company only weeks ago, on Jan. 4, and at the time, the company said Darwin would lead Alteryx's global go-to-market organization and drive its next phase of growth. Those are important responsibilities, and the decision to divide them among other managers seems questionable, especially as the company is in the midst of a turnaround after revenue growth plunged over the past year.

Darwin appears to have posted something untoward on LinkedIn and has since deleted his profile on that site.

Now what

Losing Darwin in and of itself may not be a significant problem for Alteryx, but it may be difficult for management, especially since Anderson and Darwin had worked together at Palo Alto Networks.

Following a disappointing fourth-quarter earnings report and weak guidance for 2021, Alteryx investors are desperate for some good news for the cloud stock. The latest update on Darwin is only going to fuel doubts about the new management team and the company's strategy at a key crossroads.

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

Alteryx Stock Quote
Alteryx
AYX
$56.20 (0.72%) $0.40

*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
338%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

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

Premium Investing Services

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