Why Cerence (CRNC) AI Stock is Crashing Today

Shares of Cerence (NASDAQ: CRNC) are down nearly 20% today after the company announced leadership changes.

Cerence said that its current EVP and head of its Core Products business Dr. Stefan Ortmanns will become the company’s new President and CEO.

Ortmanns will replace Sanjay Dhawan, who has resigned from the company, effective immediately. Dhawan led the AI company for about 2 years.

“Cerence has become a major player in advancing AI for mobility and no one understands the business better than Stefan,” said Arun Sarin, chairman of the board of directors, Cerence.

“As the original architect of the business and with his deep customer insights, Stefan has proven to the Board that he is the right person to take this company forward. With responsibility for more than 80 percent of the company’s revenue today, he already has the full confidence of the global Cerence team and its Board.”

Moreover, Cerence also reiterated its FQ1 guidance.

Including today’s move lower, Cerence stock price is down over 37% to see its market cap fall below $2.5 billion.

Today’s low marks the lowest level seen in Cerence stock price in the last 13 months.

You May Also Be Interested In

• Scorpion Capital says short Twist Biosciences
• D.E. Shaw owns $1B+ stake in Sysco - Reuters
• Arctos agrees to buy 10% of Atlanta Falcons at $10.6 billion valuation - Bloomberg