Why Is LegalZoom.com (LZ) Stock Down 28% Today?

  • LegalZoom.com (LZ) stock is falling alongside leadership changes.
  • This has it replacing its current CEO with its chairman.
  • The company also lowered its 2024 revenue guidance.
LZ Stock - Why Is LegalZoom.com (LZ) Stock Down 28% Today?

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LegalZoom.com (NASDAQ:LZ) stock is taking a beating on Wednesday after the online legal services company announced changes to its leadership.

The big news here is current LegalZoom.com CEO Dan Wernikoff leaving the company. That includes his resignation from its board of directors.

In place of Wernikoff, board chairman Jeffrey Stibel has been chosen as the next CEO of the company. The decision for Wernikoff to depart and Stibel to take over was made by the board of directors.

Additionally, LegalZoom.com named John Murphy as the lead independent director of the board. He said the following about the changes:

“Jeff possesses extensive knowledge of the Company’s product offerings, technology infrastructure, and attorney network, as well as the competitive landscape and customer segment. He also brings ideal experience to the role, having been an executive officer of numerous technology services companies where he successfully scaled and enhanced profitability for subscription technology offerings – an increasingly key strategic focus area for LegalZoom.”

LZ Stock Outlook

At the same time as the leadership changes were announced, the company updated its outlook for 2024. This has it lowering its revenue guidance to between $675 million and $685 million. For comparison, Wall Street’s revenue estimate for the year is $710.35 million.

LZ stock is down 28% as of Wednesday morning.

Investors will want to stick around for more of the most recent stock market stories today.

We have all of the hottest stock market news ready to go on Wednesday! A few examples include what’s happening with shares of Vivopower (NASDAQ:VVPR) and Ampco-Pittsburgh (NYSE:AP) stock, as well as the biggest pre-market stock movers. All of this news is ready at the links below!

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On the date of publication, William White 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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