Insights

Why has the BrainChip share price fallen 16% in a week

What’s happened to the BrainChip share price lately?
The post Why has the BrainChip share price fallen 16% in a week appeared first on The Motley Fool Australia. –

The BrainChip Holdings Ltd (ASX: BRN) share price has had a poor run in the past week.

Since last Wednesday, the artificial intelligence (AI) technology company’s shares have shed a touch over 16%.

In particular, the BrainChip share price has been deep in the red across the last three trading days.

At yesterday’s market close, BrainChip shares ended the day 5% down at 95 cents apiece.

What’s driving BrainChip shares lower?

While the company has been relatively quiet on the news front, investors have offloaded the BrainChip share price.

This comes after some concerns from investors that the company’s market capitalisation may have gotten ahead of itself.

BrainChip is currently valued at $1.71 billion and will only just sit inside the S&P/ASX 200 Index (ASX: XJO) from 20 June.

However, with an exorbitant market cap, it’s worth noting that the company generates very little revenue.

In its last quarterly report for the period ending 31 March, BrainChip received US$0.2 million in cash receipts from customers. And that’s a decrease of 81% from the prior US$1.1 million collected in Q4 FY21.

Furthermore, BrainChip shares rose strongly last month following investor hype regarding its acceptance into the Arm AI Partner Program.

It appears the sentiment has also worn off in the company.

Nonetheless, the S&P Dow Jones Indices announced some changes in its quarterly rebalance of the S&P/ASX Indices in which Brainchip will be added.

What this means is that a majority of fund managers can only buy shares within a certain index. The updated list may help prop up BrainChip shares as well as investors looking to take advantage of the upcoming change.

BrainChip share price snapshot

Regardless of treading lower in recent times, the BrainChip share price has gained almost 70% over the last 12 months.

When looking at year-to-date, its shares are up around 40%.

BrainChip has approximately 1.74 billion shares on its registry.

The post Why has the BrainChip share price fallen 16% in a week appeared first on The Motley Fool Australia.

Should you invest $1,000 in BrainChip right now?

Before you consider BrainChip, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BrainChip wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Why BrainChip, Firefinch, Magellan, and Westpac shares are dropping
BrainChip market cap is ‘not even close to where it can and should be’: CEO
Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares
Brainchip shares could get a massive boost this month: here’s how
5 things to watch on the ASX 200 on Monday

Motley Fool contributor Aaron Teboneras 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Free Share Allocation Reward Levels

STARTER

Class
$ 2,500 Deposit & Trade
  • REWARD^
  • 1 x Marathon Oil Corporation (NYSE:MRO)

ECONOMY

Basic
$ 5,000 Deposit & Trade
  • REWARD^
  • 1 x Pfizer Inc (NASDAQ:PFE)

ECONOMY

Standard
$ 10,000 Deposit & Trade
  • REWARD^
  • 1 x Amazon.com Inc (NASDAQ:AMZN)

ECONOMY

Plus
$ 25,000 Deposit & Trade
  • REWARD^
  • 2 x Apple Inc (NASDAQ:AAPL)
POPULAR

BUSINESS

Class
$ 50,000 Deposit & Trade
  • REWARD^
  • 4 x Apple Inc (NASDAQ:AAPL)

FIRST

Class
$ 150,000 Deposit & Trade
  • REWARD CHOICES^
  • 12 x Apple Inc (NASDAQ:AAPL)
  • 2 x Tesla (NASDAQ:TSLA)
^Please refer to the Free Share Promotion Terms and Conditions for details.

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info