Arm Holdings PLC’s blockbuster stock rally cooled Tuesday, as shares logged their worst daily performance on record.
The stock
ARM,
closed down more than 19% in Tuesday trading, which made for its largest single-day percentage loss in the five months since the company went public again. Arm shares previously had yet to record a single-session double-digit percentage decline.
See also: Arm’s Thursday stock surge burns short sellers, to the tune of $445 million in paper losses
Arm’s stock nearly doubled in the three sessions following the company’s earnings report last Wednesday, but it sank Tuesday on a weak day for the broader market and for tech stocks in general.
Even with Tuesday’s plunge, Arm’s stock is worth about as much as Boeing Co.
BA,
Goldman Sachs Group Inc.
GS,
United Parcel Service Inc.
UPS,
and AT&T Inc.
T,
as it closed with a market capitalization just above $123 billion. Looking within the chip sector, Arm is worth more than Micron Technology Inc.
MU,
and Analog Devices Inc.
ADI,
which are each valued near $90 billion.
Arm positively surprised Wall Street with its financial results and guidance last week, and those numbers hinted that the company was benefitting from the frenzied interest around artificial intelligence.
Given big recent moves for Nvidia Corp.’s stock
NVDA,
and shares of several other names linked to the AI boom, investors appeared not to want to miss the boat if Arm turned into the next hot AI-stock play. But the explosive gains in prior sessions signaled valuation was getting ignored, a Mizuho analyst told MarketWatch recently.
