By Sam Boughedda
Investing.com — Thursday has seen Elastic NV's (NYSE:ESTC) stock price fall over 11% after news it has promoted Ashutosh Kulkarni to CEO.
On Wednesday, after the closing bell, the search software maker said Kulkarni, who joined as chief product officer in 2021, will replace Shay Banon as CEO. Banon is a co-founder of the firm.
Banon will move into the Chief Technology Officer role immediately, the company said.
"I couldn't be more excited for Ash to become CEO. I've seen him in action for the past year and I know that his focused and empathetic leadership style combined with his executional and operational excellence will enable him to successfully lead Elastic," said Banon.
"Elastic is my life's work, and in my role as CTO, I'll be laser-focused on innovation and product, and people and culture - where my greatest passions lie, while Ash leads Elastic to realize its full potential," he added.
Jefferies told investors in a research note that the leadership change is worth monitoring.
Meanwhile, Citi analyst Tyler Radke released a note to investors saying that while the initial optics of the leadership change are concerning, he has confidence in the transition and "strong business trends remain intact."
Radke added that the selloff provides investors with a buying opportunity. As a result, the analyst kept a buy rating on the stock.