Arm and Instacart add to losses after lukewarm analyst reports
Arm Holdings and Instacart deepened their recent losses on Friday after analysts gave lukewarm ratings to the two companies that recently held highly anticipated initial public offerings.
Arm was last down 1.7% at $51.23. Earlier it dipped as low as $50.35, below the $51 price set in its IPO on Sept. 13.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteIIM LucknowIIML Executive Programme in Data ScienceVisitIndian School of BusinessISB Digital Marketing and AnalyticsVisitNorthwestern UniversityKellogg Post Graduate Certificate in Digital MarketingVisitIndian School of BusinessISB Professional Certificate in Digital MarketingVisit Arm surged on its first day on Wall Street and has fallen every day since then.
Grocery delivery app Instacart, formally known as Maplebear, fell 2.1% to $30.02, marginally above the $30 price set in its IPO on Monday.
The weak performances of Arm and Instacart's stocks since their market debuts add to doubts about whether a hoped-for revival in IPOs will materialize after a drought of more than 18 months.
In a client note, BTIG analyst Jake Fuller gave Instacart a «neutral» rating and warned that the company faces heavy competition from DoorDash and Uber Technologies in the slowly expanding market of grocery delivery.
In another note, Susquehanna analysts assigned Arm a «neutral» rating and $48 price target, saying the chip designer «appears to be pushing royalty rates to the limit, while also adding lower margin 'subsystems' revenue».
That followed a Bernstein «underperform» rating with a $46 price target earlier this week, and a «hold» assigned to Arm by Needham and Company on Sept. 16.
Neutral and negative stock ratings are much less common on Wall Street
