Why Office Depot Inc. Stock Plunged Today

Shares of Office Depot Inc. (NASDAQ: ODP) were tumbling today after the company reported preliminary third-quarter results, lowered its guidance for the year, and said it would acquire IT services provider CompuCom for approximately $1 billion.

For a company with a market cap of just $2 billion, the move constitutes a significant strategic shift as the office supplies retailer will focus on providing tech services as CompuCom manages around 6,000 licensed technicians serving 5.1 million end users.

As of 10:56 a.m. EDT, the stock was down 16.8%.

Source: Fool.com