XPO Logistics stock is down 40% because of a spin-off

GXO Logistics Inc (NYSE: GXO) started trading on the New York Stock Exchange under the ticker symbol “GXO” on Monday. The Greenwich-headquartered firm was originally a part of XPO Logistics Inc (NYSE: XPO), which said last month it will spin it off into an independent, publicly-traded company. XPO shares were about 40% down on Monday morning.

GXO chief executive Malcolm Wilson’s remarks

Now that the separation has been completed, XPO will get to focus on its core freight transportation services. GXO, on the other hand, is the world’s largest pure-play contract logistics provider. Shares of both companies are now independently listed on the NYSE.

GXO has big names like Apple and Nestle as customers

GXO has roughly 94,000 employees and boasts big names like Nestle, Apple, Whirlpool, and Nike as customers. Goldman Sachs & Co LLC served as the financial advisor for the spin-off, and Wachtell, Lipton, Rosen & Katz served as legal advisor.

For each share of XPO, stockholders were given one share of GXO upon separation. On “Squawk Box Europe”, GXO chief investment officer Mark Manduca said: