Why SolarWinds Stock Tanked More Than 40% Today
Shares of SolarWinds (NYSE: SWI) are down more than 41% as of 11:10 a.m. EDT, according to data from S&P Global Market Intelligence. The embattled tech company completed its spinoff of IT service software outfit N-able (NYSE:NABL) into its own separate entity. The big share price drop reflects the split. SolarWinds shareholders of record on July 12, 2021 each received one share of N-able -- which is currently trading at $14 per share, down nearly 9% as of 11:10 a.m. EDT from its debut at market open on Tuesday.
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SolarWinds filed paperwork with the Securities and Exchange Commission (SEC) last December about the spinoff. This was just days before it was revealed by security firm FireEye (NASDAQ: FEYE) that a breach on its systems was exploited through SolarWinds IT monitoring and management software Orion -- which FireEye and a slew of other tech companies and government agencies use, and through which Russian hackers had infiltrated their systems.
Source Fool.com
