Why Crocs Stock Got Crushed Today
Crocs (NASDAQ: CROX) has been one of the market's big winners in 2021. The maker of popular clogs and sandals has reported explosive growth, and its share price has nearly doubled year to date. That's even more impressive considering that the shares have dropped by more than 30% in the last month, including Thursday morning's slide of 16.7%, as of 10:24 a.m. ET.
On Thursday, Crocs announced that it will be acquiring privately held competitor Heydude for $2.5 billion. Of that sum, $2.05 billion will be paid in cash, with the balance going to the founder of Heydude in the form of Crocs shares. The cash portion will mostly be funded from a new term loan facility, which may be one reason investors are bidding the stock lower.
Source Fool.com
