Stocks plunged after Meta lured MongoDB’s CEO away. Chaos has erupted ahead of the company’s meeting with investors.

AI is still dictating the market’s pace. MongoDB fell more than 20% from the opening of trading on Wall Street following a high-profile departure. The group’s CEO, Chirantan Desai, announced his immediate resignation. He will join Meta as head of the group’s new division dedicated to Enterprise AI. The market reaction was particularly severe and did not affect only MDB stock.

Other stocks particularly affected by Meta’s announcement included major software companies. CRM and enterprise software stocks recorded even steeper losses during a Wall Street opening that was nevertheless relatively poor across the board. Salesforce and Intuit were hit, as were Oracle—albeit for other reasons—SAP and Microsoft.

A departure worth more than 20%

The news came like a bolt from the blue, striking markets that are already struggling to navigate a period of considerable tension. At the time of writing, MongoDB shares were showing a timid recovery, down only 20% at $329 after opening at $311 and touching $307.

The news that caused such a significant move in the stock’s value arrived shortly before the market opened. The group’s current CEO, known to friends as CJ, decided to send a letter, say goodbye to everyone and join Meta. He will lead a newly established AI division focused on the Enterprise world. His destination had almost the same impact as his departure: the software sector came under significant pressure, having repeatedly been the designated victim of new market trends during the AI cycle.

Room for a recovery?

Dev Ittycheria will replace the former CEO as interim chief executive. The board has nevertheless already begun the process of searching for a new CEO.

The timing is also noteworthy: the company’s investor day will take place tomorrow, September 29. This genuine revolution at the top of the company will inevitably be discussed. It is worth remembering that the company recently confirmed its guidance. Therefore, at least logically, there should be no financial problem behind the move.