Will BrainChip Shares Reach 30 Cents by Christmas? - Kalkine Media

December 11, 2023 04:26 PM AEDT | By Team Kalkine Media
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BrainChip Holdings Ltd (BRN), an ASX technology share, has faced a challenging year characterized by a substantial decline in its share price. Despite soaring over 340% in early 2022, BRN shares have experienced a downturn of more than 75% in 2023, dropping from 75 cents to 19 cents at the time of writing. Although there was a brief uptick in mid-September when shares reached around 30 cents, the prospect of BRN shares reaching this level again by Christmas appears slim. Investors in ASX technology shares will likely closely monitor BrainChip's performance amid these market fluctuations. 

The decline in BRN shares was triggered by the company's half-year update, revealing modest revenue of US$115,606 and losses of US$17.15 million for the six months ending June 30, 2023. Subsequently, ASX:BRN was removed from the S&P/ASX 200 Index. 

The latest quarterly update, covering the three months to September 30, showed limited improvement, with monthly cash receipts averaging US$9,000. The cash balance decreased by US$4 million to US$17.8 million, providing an estimated five quarters of funding. 

Considering the current state of BrainChip's finances and the absence of significant upcoming catalysts, the chances of a substantial share price increase to reach 30 cents by Christmas seem remote. The company's lack of scheduled events or announcements further diminishes the likelihood of a substantial share price move in the remaining weeks of 2023. 

While unexpected share price fluctuations are not unprecedented, the scale required for BRN shares to hit 30 cents before Christmas appears unlikely, given the company's financial challenges. Investors should exercise caution and assess the company's fundamentals before considering any significant price movement in the short term. 


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