Why did the Atomos share price just tumble 16%?

What did Atomos announce to the ASX?

| More on:
man grimaces next to falling stock graph

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Atomos shares sink 16.11% to 75.5 cents 
  • The company announced the sudden conclusion of its CEO, Estelle McGechie 
  • In the interim, Atomos chief technology officer, Trevor Elbourne will assume the top job 

The Atomos Ltd (ASX: AMS) share price is losing ground today following the surprise conclusion of a senior leadership figure.

During mid-afternoon trade, the video technology company's shares are down 16.11% to 75.5 cents.

Atomos appoints interim CEO

Investors are selling Atomos shares after the shock announcement that its CEO, Estelle McGechie will no longer serve in the role.

According to the release, Ms McGechie has yet to relocate to Australia, which is a requirement for the top job.

Atomos stated that its CEO must reside in Melbourne where its headquarters is based.

As a result of the departure, Atomos chief technology officer, Trevor Elbourne will assume the CEO role for the interim.

Mr Elbourne, who lives in the Victorian capital, is expected to launch the company's new products later this month. He and his team have been diligently working on improving video production workflows for the last two years.

Notably, Mr Elbourne is one of Atomos' founding employees, having joined the company in 2012. Since then, he has played a vital role in determining Atomos' technology strategy and product roadmap.

In 2017, Mr Elbourne was appointed chief technology officer and oversaw the successful development of Atomos' flagship Ninja V and Shinobi products.

The board advised it will commence a global search process for a permanent appointment.

Atomos reconfirmed its FY22 guidance for revenue of $95+ million as well as an EBITDA margin of 12% to 15%.

Atomos' non-executive chair, Chris Tait touched on the CEO change saying:

I would like to thank Estelle for her efforts at Atomos and on behalf of the Board wish her the best in her future endeavours.

Trevor is a logical and highly capable appointment as interim CEO given his intimate knowledge of the products and technology that have made Atomos one of the global leaders in video technology today.

As the Company embarks on an exciting expansion of our product line-up, the Board is confident Trevor will bring his deep experience in technology innovation to ensure our products continue to meet the changing needs of our growing customer base.

About the Atomos share price

Over the past 12 months, Atomos shares have lost 25% in value, with year to date dropping around 30%.

Based on today's price, Atomos has a market capitalisation of roughly $168.98 million.

Should you invest $1,000 in CSL right now?

Before you buy CSL shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and CSL wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Atomos Ltd. The Motley Fool Australia has recommended Atomos Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

A man in full American NFL playing kit crouches over with his arms across his chest in a defensive stance against a dark background.
Technology Shares

ASX 300 tech stock charges 7% higher to record high on stellar results

This tech stock delivered another impressive result this morning.

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Technology Shares

Up 87% in 12 months: Why this ASX tech share is still a top buy

This technology business still has loads of potential, according to a fund manager.

Read more »

a group of three cybersecurity experts stand with satisfied looks on their faces with one holding a laptop computer while he group stands in front of a large bank of computers and electronic equipment.
Technology Shares

2 ASX 200 tech stocks Morgans rates as buys

The leading broker has named a couple of shares to buy right now.

Read more »

Man smiling at a laptop because of a rising share price.
Technology Shares

Is it time to buy ASX data centre shares?

ASX data centre shares have been rebounding lately. Will they continue to?

Read more »

a group of people sit around a computer in an office environment.
Earnings Results

Guess which ASX 200 tech stock is rocketing 12% on record results

Another half, another record result from this high-quality company.

Read more »

Man on his laptop standing next to data centres.
AI Stocks

3 reasons to buy this $9 billion ASX 200 AI stock today

A leading expert forecasts this $9 billion ASX 200 AI stock will deliver “meaningful earnings upside”.

Read more »

Business people discussing project on digital tablet.
Technology Shares

After its result, what does Macquarie think Xero shares are worth?

Here's what the leading broker is saying about this tech stock.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Technology Shares

Gentrack share price down 5% on half-year results

Let's unpack what was reported.

Read more »