Trump-linked Phunware plunges 40% as CEO exits after one year

Phunware

24/10/2024 20:44

(Updates, adds company news from last week in 5th bullet)
** Shares of software developer Phunware  PHUN.O  fall as much
as 40% to $8.50 on Thurs after co said its CEO retired after a
year in the role
    ** Stock on course for biggest one-day pct drop since Jan
17, when it plummeted ~61%
** Austin, Texas-based firm early Thurs announced Michael
Snavely retired and resigned from co, and appointed former board
chair Stephen Chen as interim CEO, effective Oct 22
    ** Snavely joined Phunware in Sept 2023 as chief revenue
officer, and was named CEO a month later
** On Oct 16, PHUN shares rose ~18% after co issued letter to
stockholders from Snavely which announced development of a new
generative AI-based platform launching in mid-2025. The platform
would allow businesses to create custom mobile apps in "days or
even hours," Phunware said
** PHUN shares, which ended Sept 2024 at $3.42, have also been
aided by strong rally in Trump Media's  DJT.O  stock as betting
odds favored Republican candidate Donald Trump in his bid to
return to the White House
    ** Phunware, which now has roughly $100 mln market cap, was
hired by Trump's 2020 presidential re-election campaign to build
a phone app
    ** DJT shares recently off 2.4% at $35.07 on Thurs, after
falling nearly 8% earlier

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))