Why is the BrainChip share price sinking 11% on Friday?

A man holds his head in his hands, despairing at the bad result he's reading on his computer.

A man holds his head in his hands, despairing at the bad result he's reading on his computer.

The BrainChip Holdings Ltd (ASX: BRN) share price is on course to end the week in a disappointing fashion.

In afternoon trade, the semiconductor company’s shares are down 11% to $1.13.

What’s going on with the BrainChip share price today?

Investors have been selling down the BrainChip share price today despite there being no news out of the company.

However, it is worth noting that a number of tech shares that have been rallying inexplicably higher over the last couple of weeks have come under pressure along with BrainChip. For example, the Zip Co Ltd (ASX: ZIP) share price is down 20% at the time of writing.

This appears to have been driven by profit taking from some investors or traders.

The good news for shareholders is that the BrainChip share price is still up materially since this time two weeks ago despite this decline.

Two Friday’s ago, the company’s shares ended the week at 87 cents. This means BrainChip’s shares are trading a sizeable 30% higher than this level currently.

It also means the company still has a market capitalisation of $2 billion. That’s despite its latest quarterly update revealing sales receipts of just US$1.2 million.

The post Why is the BrainChip share price sinking 11% on Friday? appeared first on The Motley Fool Australia.

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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 positions in and has recommended ZIPCOLTD FPO. 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.

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