Why Zendesk Stock Plunged Today

Shares of customer-service software company Zendesk (NYSE: ZEN) plunged on Thursday after the management team announced the end of a strategic review. In short, the company is remaining independent whereas it appears the market had hoped an acquirer would step in. As of 10 a.m. ET, the stock was down 10%.

For context, Zendesk's stock had been outperforming the S&P 500 so far in 2022 in large part because investors thought the company would be acquired. There were even reports of multiple bids, which would in theory only increase the potential acquisition price.

Today's announcement from management throws cold water on that fire and the stock is now underperforming the market for the year.

Source Fool.com