Arm Falls After Bernstein Downplays Company’s AI Prospects
- The firm issued a new underperform rating on the shares
- Stock fell below where it opened in last week’s trading debut
With the decline, the stock is now below the $56.10 price it opened at following its Thursday initial public offering.
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Arm Holdings Plc shares fell on Monday after Bernstein started coverage on the newly public chip designer with an underperform rating, suggesting it may not be the beneficiary of artificial intelligence that some investors expect.
The stock fell as much as 9.4% to $55.02, below the $56.10 price it opened at following its Thursday initial public offering. However, it pared much of that decline and ended down 4.5% to close at $58. Bernstein’s price target of $46 implies additional weakness.