Betrayal of a Major US IPO? Arm Falls Below Offering Price

Arm, Intraday Drop to $49.85
Instacart Hits $29.90 at One Point
Wall Street Suggests Arm Stock Overvaluation

This year, the stock prices of Arm, a British semiconductor company once hailed as a major player in the U.S. IPO (Initial Public Offering) market, and Instacart, a food delivery startup, have shown sluggish trends, with prices falling below their offering prices during intraday trading.

[Image source=Getty Images Yonhap News]

On the 21st (local time) at the New York Stock Exchange, Arm's stock price fell as low as $49.85 during the day, hovering below the offering price of $51. Arm began trading on the 14th at $56.10, 10% higher than the offering price, and its stock surged 25% on the first day alone. However, the stock price has declined for five consecutive days since the following day. On this day, Arm's stock price turned bullish in the afternoon but closed at $52.16, down 1.42% from the previous closing price of $52.91.

Instacart's stock price also fell below its offering price of $30 during the day, dropping as low as $29.90. Instacart started trading on the 19th at $42, which was $12 (40%) higher than the offering price of $30, but its stock price fell to $29.96 during intraday trading the previous day. On this day, Instacart's stock closed at $30.65, up 1.83% from the previous day's $30.10.

On Wall Street, there were negative opinions, stating that Arm's stock price was overvalued. Redburn Atlantic Equities, a Wall Street investment firm, initiated a 'neutral' investment rating on Arm, explaining that Arm needs to prove its competitiveness through performance. Another Wall Street investment firm, Bernstein, also gave Arm a 'sell' rating.

This content was produced with the assistance of AI translation services.