One Announcement Every Investor Should Watch

Editor's note: Investors often rely on complex screens and data to uncover new opportunities. But one of the most powerful signals is much simpler: leadership change. In this essay from Joe Austin of our corporate affiliate Chaikin Analytics, he explains why new CEO announcements can help investors spot potential winners early...

There's no shortage of methods that folks use to get the next big investment idea...

Some people like complex strategies. They use quantitative screens to find stocks with a high return on equity, low price-to-earnings (P/E) ratio, or accelerating earnings growth.

Others use AI to dig through mountains of data – like long regulatory filings and earnings-call transcripts.

When it comes to filings, some folks like to watch for 13-Fs. These quarterly reports show which stocks hedge funds and big money managers own.

But there's one approach that's amazingly simple and doesn't require any of that. And it has been great for me over time.

Always take a look when a company names a new CEO.

A new figure at the helm often signals that change is coming. And change can lead to great opportunities for investors.

Sometimes it's a promotion from within. If the company is doing well, the board probably wants to stay the course.

But in other cases, the board will bring in an outsider to shake things up. And we're seeing that a lot more often these days...

External hires hit an eight-year high of 33% last year. That was nearly double the 18% from 2024.

Meanwhile, CEO successions at top-performing S&P 500 Index companies hit 12% in 2025. Among the weakest performers, the rate was only slightly higher at 14%.

That means even strong companies are making moves to shake up leadership. And good boards never elect a person who isn't qualified for the job. So using the "new CEO" approach can give investors plenty of ideas to work with.

But how the new CEO performs will determine results for investors...

A Leadership Change at Intel Led to a Huge Surge for Its Stock

Not long ago, Intel (INTC) was a mess...

In October 2024, the tech giant posted its biggest quarterly loss in history – a staggering $16.6 billion.

Revenues for the full year were just a little higher than $53 billion. That was down about 33% from roughly $79 billion in 2021.

And worst of all, Intel was losing its lead in chip manufacturing.

By early 2025, it struggled with yields of only about 10% on its latest-generation chips. Meanwhile, rival Taiwan Semiconductor Manufacturing (TSM) saw yields of more than 60%.

In 2024 alone, Intel shares collapsed roughly 60%.

So last March, the company made a change...

It hired Lip-Bu Tan – the man who ran Cadence Design Systems (CDNS) for more than a decade – as its new CEO.

Under Tan's leadership at Cadence, CDNS shares rose more than 3,200%. So he had a proven track record.

And Tan got right to work...

He wanted a brutal cost reduction. He announced plans to cut 24,000 jobs in 2025 – roughly a quarter of Intel's workforce.

He also instituted programs to reduce operating expenses by $17 billion. And he canceled plans to build two new factories in Germany and Poland.

Meanwhile, Tan brought three new investors into Intel – the U.S. government for $8.9 billion, chip titan Nvidia (NVDA) for $5 billion, and Japan-based tech conglomerate SoftBank for $2 billion.

With the Nvidia announcement, Intel's stock surged by nearly 23% in a single day. That marked its biggest gain since 1987.

Tan also began a turnaround in Intel's manufacturing operations. As the year progressed, yields on Intel's most advanced chips went from 10% to nearly 70%.

In 2025, Intel's stock soared 84%.

But not all new CEOs have such great success so quickly...

Starbucks Is Still Trying to Right the Ship

In 2024, coffee giant Starbucks (SBUX) hired Brian Niccol as its new CEO.

Niccol had been Chipotle Mexican Grill's (CMG) CEO since 2018. Under his tenure, revenues more than doubled and profits rose by 7 times.

It's no surprise that Chipotle's stock boomed...

From the day Chipotle announced that Niccol would be joining the company to the day it announced his departure, the stock soared by 927%.

Starbucks investors initially liked the leadership move. Shares surged by about 25% on the announcement that Niccol would be taking charge.

But he was facing huge problems...

In the quarter before Niccol took the helm, Starbucks' same-store sales had shrunk by 3%. And during the previous CEO's tenure leading up to the new leadership announcement, the stock had fallen more than 20%.

Activist investors Starboard Value and Elliott Investment Management both had also taken large positions in the company. And they were pushing for change.

Niccol became the company's fourth CEO in two years. And he had plenty of work to do...

He announced plans to cut 1,100 corporate jobs. In stores, he set a goal of a four-minute wait time for orders. And he got rid of a surcharge for non-milk substitutions that was unpopular with customers.

In November 2025, Starbucks said it would sell 60% of its China operations to a private-equity firm. This cut what had become a drag on earnings in a brutally competitive market, while keeping some future upside for the company.

In the most recent quarter, things finally started looking slightly better...

Starbucks' North American same-store sales finally rose 4%, the first increase in eight quarters. And international same-store sales were up 5%.

While the jury is still out, some important numbers are moving in the right direction.

Look for New CEO Announcements

Not every new CEO quickly turns a company around – or turns it around at all. The Intel and Starbucks stories show how differently these situations can play out.

But in both cases, the hiring triggered real change. And when things get shaken up, prices move, strategies shift, and opportunities appear.

So the next time you see a CEO announcement, don't scroll past it. That's where the story starts.

And you don't need a complex quant screen or an AI model to spot it.

The screen is free. The signal is real.

You still have to do the digging... but at least you know where to start.

Good investing,

Joe Austin

Editor's note: Volatility is spiking, tech is breaking down, and hedge funds are already selling. Now, Chaikin Analytics founder Marc Chaikin says a dangerous "bear market window" is about to open. On March 25, he'll reveal his "secret weapon"... and the little-known strategy that could help you lock in returns as markets crumble.