The Splitit (ASX: SPT) share price slumped 8% today. Here’s why

Here’s what happened at the BNPL company’s AGM.

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The Splitit Ltd (ASX: SPT) share price has been in the red all day today, sinking by as much as 8% in afternoon trade.

The plunge follows the company’s annual general meeting, where Splitit’s leaders outlined its future direction and reflected on a year in which COVID-19 amplified its business.

The company’s interim CEO, John Harper, noted that his view as an involved newcomer had led to a new action plan to increase the company’s value.

Despite positive overtones and forward planning from its leaders, the buy now, pay later (BNPL) company’s stock has failed to rally. At the time of writing, the Splitit share price is trading at 41.5 cents, 5.68% lower than its previous close.

Simultaneously, the broader market is gaining. The S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) are both around 0.5% higher right now.

Splitit’s next steps forward

According to today’s releases, Splitit’s annual general meeting was topped off by the company’s interim CEO’s address. Within his speech, Harper outlined several changes Splitit will be making soon, saying:

We are operating in a market that is moving and growing quickly. We need to bring a greater sense of urgency to capitalise on this opportunity from a sales perspective…

[Splitit has] a natural and untapped opportunity in the market, but we need to do a better job of effectively articulating [its] value.

To help grasp such opportunities, Harper will bring in a chief people officer and a product team. He said the new additions would foster collaboration within Splitit’s global segments and allow its technical engineers to remain connected to customers’ needs.

The company will also focus on the North American and United Kingdom markets. Harper said doing so would enable it to tap into more “higher-value merchants”.

It will also focus on improving its core product and attracting new merchants while reducing costs.

Splitit share price snapshot

The Splitit share price has had a challenging year so far, falling 68% since the start of 2021. Splitit shares are also trading 72% lower than this time last year.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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