Why RingCentral Stock Plunged 18% Today

Shares of cloud-based communications expert (NYSE: RNG) played a sad tune on Tuesday. The company reported solid earnings on Monday evening, but the mildly bullish financial update was undermined by a shakeup in the C-suite. RingCentral's stock opened Tuesday's trading session 11% lower and continued to droop throughout the day. The plunge had grown to 18.6% by 3:45 p.m. ET.

Let's do the good news first.

Compared to the year-ago period, RingCentral's top-line sales rose 11% in the second quarter to $539 million. As usual, the more profitable class of mid-market and enterprise clients increased their order volumes faster than other customers.

Source Fool.com