Why It Appears XPO Stock Is Down Nearly 40% Today
XPO Logistics (NYSE: XPO) has completed its spinoff of brokerage RXO (NYSE: RXO), meaning that investors now own a share of RXO for every XPO share held. The value of the combined stocks is approximately the value of XPO pre-split, but many market-reporting tools are slow to adjust. As a result, a lot of investors are seeing XPO shares as down nearly 40% in Tuesday trading.
It is a confusing day to be a holder of shares of transportation giant XPO Logistics. Before markets opened, XPO completed the spinoff of RXO and distributed shares to its current investors. With RXO now independent, the overall size of XPO has fallen. As a result, XPO shares that closed at $51.70 on Monday are trading at around $32 apiece on Tuesday.
But that fall doesn't tell the whole story. Investors also now own shares of RXO that are valued at just over $20 apiece at the time of writing. So yesterday's one share at $51.70 is equivalent to about $52 worth of XPO and RXO combined today.
Source Fool.com
