MW Phunware's stock tumbles more than 35% after CEO retires

By James Rogers

Stephen Chen, former chair of Phunware's board, is serving as interim CEO following Michael Snavely's retirement.

Shares of Phunware Inc. were down more than 35% after the retirement of Chief Executive Mike Snavely from the mobile-advertising company.

Stephen Chen, the former chair of Phunware's $(PHUN)$ board of directors, has assumed the role of interim CEO, effective Oct. 22, the company said in an announcement Thursday.

The stock, which has surged in recent weeks, is on pace for its largest percentage decline since Jan. 17, 2024, when it fell 61.3%, Dow Jones Market Data show. Phunware shares are also set to snap a three-day winning streak. The stock has gained in 18 of the last 23 trading sessions.

Related: Trump-linked Phunware's stock set for biggest gain since March on 'insane volume'

Snavely was hired as the company's chief revenue officer in September 2023 and was appointed CEO the following month.

"Leading Phunware as CEO has been one of the most rewarding experiences of my career," he said in the company's statement. "I am very proud of what we accomplished as a team over the last 12 months."

"As I stated in our Letter to Shareholders, Phunware and its platforms, products, and services are well-positioned for the future," Snavely added. "I am looking forward to my retirement and to pursuing my passion for rural enterprises."

Related: Phunware stock climbs 18% after mobile-advertising company touts generative AI

Phunware garnered plenty of attention after the company developed and launched a mobile app for the Donald Trump's 2020 re-election campaign.

The stock climbed last week after the company gave a business update and announced the development of a new generative AI platform. The company's new AI-powered software-as-a-service platform will launch in mid-2025, Snavely said.

Phunware's recent rallies have also, to an extent, mirrored the performance of Trump Media & Technology Group Corp. $(DJT)$, which operates Donald Trump's social-media platform Truth Social.

Related: 'DJT' and Trump-related stock Phunware had an eventful day. This is what people are saying about them.

Shares of Phunware have risen more than 120% in 2024, outpacing the S&P 500 index's SPX gain of nearly 22%

-James Rogers

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October 24, 2024 15:33 ET (19:33 GMT)

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