Why did the BrainChip share price plunge 12% today?

Person with thumbs down and a red sad face poster covering the face.

Person with thumbs down and a red sad face poster covering the face.

The BrainChip Holdings Ltd (ASX: BRN) share price has continued its slide on Tuesday.

In morning trade, the artificial intelligence technology company’s shares were down as much as 12.5% to 76.5 cents.

When the BrainChip share price hit that level, it meant it was down 31% since this time last month.

Its shares have since recovered a touch but remain down 6% at 82 cents at the time of writing.

Why is the BrainChip share price sinking?

Investors have been selling BrainChip shares today following a broad market selloff that has been felt hardest in the tech sector.

This has been particularly the case among loss-making tech shares such as BrainChip and Zip Co Ltd (ASX: ZIP). The latter is down a massive 20% this afternoon.

Remarkably, despite its recent weakness, the tech selloff in 2022, and its distinct lack of revenue, the BrainChip share price is still trading modestly higher in 2022.

As a comparison, the S&P ASX All Technology index is down 40% since the turn of the year.

Though, whether or not the company’s shares are able to hold onto these gains amid the sustained market weakness and its continued cash burn, only time will tell.

The post Why did the BrainChip share price plunge 12% today? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/wLxrucb

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s