GOOGL - Why Alarm.com Stock Plummeted Today
Shares of Alarm.com (NASDAQ: ALRM) have plummeted today, down by 19% as of 1:15 p.m. EDT, after Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Google announced that it would invest in rival ADT (NYSE: ADT) as part of a strategic partnership. The deal will make one of Alarm.com's biggest home security competitors much stronger.
Google will invest $450 million in ADT, which will get it a 6.6% stake in the company as part of the long-term partnership. ADT will issue newly created Class B shares that will have limited voting rights. Both Google and ADT will also invest $150 million into several initiatives around co-marketing, product development, and employee training. As part of the agreement, ADT will integrate with Google's Nest brand, which encompasses the tech giant's smart home and home security offerings.
Image source: Alarm.com.