Bumble Inc (NASDAQ:BMBL) shares are down more than 6% Wednesday after the company revealed after the close Tuesday that President Tariq Shaukat will step down after three years at the firm.
Shaukat will leave Bumble effective as of September 1, 2023, and move to an advisory role during a transition period. As per the SEC filing, Shaukat's resignation is voluntary and is not the result of disagreement with the company.
Reacting to the announcement, Evercore ISI analysts said the firm views the announcement as incrementally negative for the company.
The analysts explained that they see the announcement as incrementally negative because Shaukat is one of the key leaders at Bumble and "likely one of the most impactful executives after Whitney [CEO Whitney Wolfe Herd], especially when it comes to international market expansion and product launches."
"Tariq joined the company in 2020, pre-IPO, and in our view, has a solid understanding of the business and the category, and we will closely watch the company's announcement for his replacement," the analysts added.
"Tariq's resignation comes at a time when online dating category is out of favor among investors due to the slowdown in the category leader (Tinder), macro headwinds, and growing penetration levels. Tariq's resignation could create a distraction for Bumble's management team at a time when the company will need to continue to operate successfully and gain share."
Despite the negatives, the analysts did go on to state that they still believe BMBL's risk/reward remains attractive at current levels.