Shares of business messaging company Twilio tanked 12 percent Tuesday, a day after the company announced a $2 billion all-stock deal for mass emailing company SendGrid.
Twilio stock initially fell off 4 percent in extended trading Monday, and widened its losses Tuesday morning. The stock fell below $67 at its lowest point during morning trading, down from Monday’s close of $76.13.
The dip puts Twilio on pace for its worst day of trading since May 2017.
The company facilitates customer communication for software developers, and SendGrid offers at-scale emailing services.
Shares of SendGrid rose 4 percent Tuesday.
Twilio stock has far outpaced the overall market this year, up more than 180 percent in 2018. With Tuesday’s plunge, shares have now entered bear market territory, more than 24 percent off 52-week highs.
