Coursera’s stock fell 7.1% after announcing a $2.5 billion merger with Udemy, with Coursera shareholders owning 59% of the combined entity. Annual cost savings of $115 million are projected, but the market reacted negatively, possibly due to the all-stock transaction diluting shareholder value. UBS lowered Coursera’s price target to $9.00, causing the stock to close at $7.58.

The market sees Coursera’s news as significant but not game-changing, as the stock is down 10.7% this year. Positive inflation data led to a 4% gain previously. Coursera is trading 40.4% below its 52-week high at $7.58 per share.

Read more at Stock News Network: Why Coursera (COUR) Shares Are Sliding Today