Sound systems company Sonos (SONO) announced the departure of CEO Patrick Spence today. Replacing him as interim CEO is independent Board member Tom Conrad. The company also started a search to find a permanent replacement for Spence.
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Sonos said its CEO’s departure was a mutual agreement between him and its Board of Directors. Spence also gave up his Board seat today. Additionally, the company claims this change has nothing to do with its upcoming earnings report, releasing Feb. 6, 2025, and that it won’t provide an update on that quarter at this time.
What we do know is Sonos wants to undo the damage Spence has done to the brand. Conrad confirms as much in his opening statement as interim CEO, saying the company will “restore the reliability and user experience that have defined Sonos, while bringing innovative new products to market.” In an internal email to employees, Conrad said Sonos has “let far too many people down” this year.
How Did Spence Fail Sonos?
The disposed CEO was the driving force behind the company’s redesigned Sonos app. This app was supposed to bring Sonos into a new generation with its hardware easily linking up through the service. Instead, the updated Sonos app was a complete mess, causing issues for long-time customers who had spent thousands of dollars on the company’s equipment.
SONO stock has felt the effects of this failure with the company’s shares down 11.64% over the past 52 weeks. The negative movement continued into 2025 with shares slipping 7.65% year-to-date. Adding to that is another 3.58% decrease today.
Is SONO Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Sonos is Hold based on two Buy, one Hold, and one Sell ratings over the last three months. With that comes an average price target of $14, a high of $18, and a low of $10. This represents a potential 0.14% upside for SONO shares.
