Megaport share price ASX recorded a steep decline on Tuesday after the company announced the resignation of its chief executive officer. The company’s shares ended Tuesday’s market session 14.98% lower at A$4.88, its lowest level since 2022. The stock has been among the worst-performing stocks in the S&P/ASX 200 benchmark index, crashing by more than 12% in the past week and nearly 23% in the year to date.
Megaport share price ASX was in the red on Tuesday after the Australian company announced the sudden resignation of its CEO. Megaport Ltd engages in the provision of software-defined networking-based interconnection services. The company operates through the following geographical segments: Asia-Pacific, Europe, the Middle East, North America, and Africa.
Megaport shares slipped to a nine-year low after the Australian-based technology company announced that its CEO, Vincent English, had tendered his resignation, effective immediately. Investors are questioning whether the heavily shorted tech stock is facing a wider management shake-up.
Bevan Slattery, who is the acting CEO, stated that,
“Vincent has provided outstanding leadership as CEO of Megaport for the past six years, leading the business through its scale up and scale out transformation.”
Investors have shifted their focus to the Reserve Bank of Australia (RBA) rate statement, released earlier on Tuesday. After announcing nine consecutive interest rate hikes so far, the RBA is up for another hawkish monetary policy outcome. The RBA hiked their overnight cash rate by 0.25% to 3.60%, the 10th consecutive hike. Even so, the RBA seems less hawkish, suggesting that it is getting closer to the end of its tightening cycle.
Megaport Share Price ASX Forecast
The daily chart shows that the Megaport share price has been under intense pressure for the past few days. The stock has managed to move below the 25-day, 50-day, and 100-day moving averages. It has also moved below the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) has moved lower to 33, which is slightly above the oversold region.
Therefore, the stock is likely to continue falling as sellers eye the next support levels at A$4.50 and A$4.00. On the flip side, a move past the resistance level at A$6.20 will invalidate the bearish view.