Arm Holdings PLC, a leading semiconductor design company, has experienced a decline in investor interest following its impressive initial public offering (IPO) debut. The company’s stock (ARM, -4.40%) recorded its third consecutive loss on Tuesday, falling by 4.1% in midday trading and losing a total of 12.5% over the past three sessions.
During its first day of trading, Arm closed at $63.59 per share, a 24.7% increase from its IPO price of $51. However, despite this initial success, the stock has since experienced a pullback and is currently trading 0.9% below its debut price. Nevertheless, it still maintains a 9.1% increase from the IPO price.
Following the decline in stock value over the past three days, Arm’s market capitalization has decreased by approximately $8.18 billion to a total of $57.07 billion. This downward trend raises concerns among Wall Street analysts, as only one out of four analysts surveyed by FactSet expressed a bullish outlook on Arm. Two analysts were neutral, while one held a bearish view. The average price target stands at $51.75, reflecting a 7.0% decrease from current levels and a mere 1.5% increase from the IPO price.
In addition to Arm’s fading investor interest, another high-profile IPO, Maplebear Inc. CART, +33.48% (also known as Instacart), made a strong debut on the Nasdaq. Instacart’s shares opened at $42.00, 40% above its IPO price of $30.
Moreover, investor interest in the broader IPO market has relatively waned compared to the overall stock market performance. The Renaissance IPO ETF IPO has declined by 1.2% over the past three months, while the S&P 500 index SPX has only seen a slight increase of 0.3%.