Shares of Square Inc. SQ, -10.08% plunged 15% in morning trade Thursday, putting them on track for the biggest selloff this year, in the wake of the fintech company’s announcement that Chief Financial Officer Sarah Friar was leaving. Raymond James analyst John Davis said the “rockstar CFO” leaving is a “blow to the company,” as Friar ran a significant portion of Square’s day-to-day operations given Chief Executive Jack Dorsey’s dual duty as Twitter Inc. TWTR, +0.52% CEO. “As for the stock, we expect continued pressure in the near term…given uncertainty created by Ms. Friar’s departure and lack of valuation support anywhere in sight,” Davis wrote in a note to clients. SunTrust Robinson Humphrey analyst Andrew Jeffrey said Friar’s leadership may have been more instrumental to Square’s emergence as an impressive growth story. “As a result, we would probably have to see a material discount to become constructive [on the stock],” Jeffrey wrote. The stock, which is headed for the biggest selloff since Nov. 27, 2017, has still gained 90% year to date while the S&P 500 SPX, -0.70% has tacked on 3%.
Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.