Here's Why Splunk Shares Are Soaring Today

Private-equity firm Hellman & Friedman LLC acquired a 7.5% stake in Splunk Inc SPLK worth about $1.4 billion.
The Wall Street Journal reports that Hellman & Friedman started buying the stake in mid-late December after Splunk shares plunged when the company's former CEO resigned following several quarters of disappointing results.
The stake would make Hellman & Friedman the most prominent active shareholder of Splunk, which has a market value of nearly $20 billion.
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Earlier this week, Splunk appointed Gary Steele as its new CEO. He was the founding CEO of Proofpoint Inc.
Splunk also reported fourth-quarter FY21 revenue growth of 21% from a year ago to $901.1 million, beating consensus of $774.6 million. Annual recurring revenue rose 32% Y/Y to $3.12 billion.
Price Action: SPLK shares traded higher by 6.36% at $129.58 on the last check Friday.