Big changes are underway at Troika Media Group (NASDAQ:TRKA). The global media company has confirmed that it has terminated two of its top executives. Both CEO Sadiq Toama and CFO Erica Naidrich have been removed from their positions for cause “pursuant to the terms of [their] employment agreement.”
TRKA stock isn’t reacting well to this news, but Troika’s problems didn’t start here. Since the short squeeze of March 2023, the unstable meme stock has been in a race to the bottom. Investors didn’t have much cause to bet on it before, but they have even more reason to be worried now. Shakeups at the top management level don’t usually help boost share prices.
What does this news mean for Troika’s future? Let’s take a closer look and assess what investors should be expecting.
What’s Happening With TRKA Stock?
Today has been volatile so far, and Troika’s performance isn’t encouraging. As of this writing, TRKA stock is down 8% for the day. Its current trajectory suggests that shares have even further to fall as the termination news spurs negative momentum. The company began this week by falling and has since shed almost 50% of its value in just the past five days.
While Troika hasn’t offered much information regarding the recent terminations, it may be linked to the recent court complaints filed against the company. As InvestorPlace’s Eddie Pan noted:
“Last month, Troika Media Group CEO Sadiq Toama disclosed that he intends to withdraw himself from the complaint against Troika without prejudice. The complaint was filed against Troika and its special purpose acquisition company (SPAC) sponsor, CD Acquisition Corp, by the sellers of Converge Direct. It alleges that Troika failed to pay the sellers $4.34 million as part of its acquisition of Converge.”
Troika may be trying to show investors that it is focused on starting a new chapter with different management. Street Insider reports that Grant Lyon and Eric Glover have been appointed interim CEO and CFO, respectively, effective immediately.
Lyon is a current member of the company’s board of directors. No further information on the company’s plans for moving forward with different leadership. But as of right now, it is unlikely that TRKA stock will rebound in the near future.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.