Why Masimo Stock Is Tanking Today

Shares of Masimo (NASDAQ: MASI) were tanking 35.2% as of 12:37 p.m. ET on Wednesday. The steep decline came after the medical technology company provided its fourth-quarter update following the market close on Tuesday.

Masimo's results were actually pretty good. The company reported revenue of $327.6 million, up 11% year over year. It generated adjusted earnings of $1.21 per share in the fourth quarter. Both results beat consensus Wall Street estimates.

However, investors were not happy at all about Masimo's other big news in its fourth-quarter update. The company announced that it plans to acquire Sound United for $1.025 billion. 

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Source Fool.com