Megaport share price tumbles 10% on CEO resignation

Megaport investors are not taking the news kindly.

| More on:
A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.

Image source: Getty Images

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

Key points

  • The ASX 200 is having a dreary day so far this Tuesday
  • But Megaport shares are really on the nose
  • So why has the company's CEO suddenly departed?

The S&P/ASX 200 Index (ASX: XJO) is having a bit of a slow day so far this Tuesday. At the time of writing, the ASX 200 has slumped by 0.15%, dragging the Index down to around 7,317 points. But that's nothing compared to the woes of the Megaport Ltd (ASX: MP1) share price.

ASX 200 tech share Megaport is having a shocker today, no way around it. The Megaport share price closed at $5.74 yesterday. But the company opened at $5.50 this morning and has fallen a nasty 10.8% so far, down to just $5.12 a share. Ouch.

So what's going on here that has elicited such a dramatic slump in the value of Megaport shares this Tuesday?

Well, it appears this share price slump has been sparked by some news out of the company today. In an "executive management update" released to the markets this morning before open, Megaport has announced that none other than its CEO, Vincent English, has tendered his resignation, effective immediately.

Megaport share price tanks after CEO's abrupt departure

In the ASX statement, Megaport founder and chair, Bevan Slattery, had this to say:

Vincent has provided outstanding leadership as CEO of Megaport for the past six years, leading the business through its scale up and scale out transformation.

Vincent has been responsible for driving the vision of the Company through a period of incredible growth and for creating a legacy which sets the Company up for accelerated revenue growth and operational success in the future.

No other reasons were given for English's rather abrupt departure.

Slattery will now act as interim CEO while Megaport commences a "global search" for its next leader. English will remain "available" at Megaport until 30 April to "advise and assist" the company with the transition.

English might get some heart from the Megaport share price's reaction to the news of his departure — investors clearly aren't thrilled. Although this might also be a consequence of the somewhat rushed nature of this development.

But the Megaport share price has been on struggle street for a while regardless. The company has lost almost 15% year to date in 2023 so far, as well as a painful 60% or so over the past 12 months:

Megaport shares are also down more than 75% from their all-time high above $21 a share that we saw back in late 2021.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A view of competitors in a running event, some wearing number bibs, line up together on a starting line looking ahead as if to start a race.
Technology Shares

Here's how the ASX 200 market sectors stacked up last week

ASX technology shares led the market with a 2.48% increase last week.

Read more »

A father helps his son look through binoculars during a family holiday or day out in the city.
Opinions

Up 190% in a year, why I think Life360 shares can keep soaring higher

This tech stock has plenty of potential.

Read more »

two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.
Technology Shares

What's happening with ASX 200 tech shares following the Nasdaq rout?

Aussie tech investors will be eyeing the big retrace in the Nasdaq overnight.

Read more »

Lithium ion batteries
Earnings Results

Needs a recharge: Novonix share price sees red after Q3 earnings

Investors were likely expecting a tad more.

Read more »

Two boys in business suits holding handfuls of money
International Stock News

Here are the US stocks that just delivered James Packer a $590 million profit

US tech continues to dominate.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Guess which ASX tech stock just leapt 26% on accelerating growth

Here’s what’s grabbing investor interest.

Read more »

A woman screams and holds her hands up in frustration.
Technology Shares

Cettire shares crash 17% on sinking profits

This online retailer has had a tough start to FY 2025. Here's what you need to know.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Technology Shares

Why this top broker just upgraded DroneShield shares

Bell Potter sees recent share price weakness as a buying opportunity for investors.

Read more »