This week so far has been a bit of a rollercoaster for the All Ordinaries Index (ASX: XAO) and most ASX All Ords stocks. Monday saw the All Ords climb a confident 0.9% before investors reversed course yesterday with a 0.6% slump.
Today, the bulls are back, with the All Ordinaries vaulting an impressive 1.2% higher at the time of writing. But let's talk about one ASX All Ords stock that is going the other way.
That ASX All Ords stock is none other than artificial intelligence (AI) company BrainChip Holdings Ltd (ASX: BRN).
Brainchip stock has certainly had a week to forget. Despite rising 5% on Monday, this company tanked by an awful 9.52% during yesterday's trading to finish up at 19 cents a share.
Today, the selling has continued, with Brainchip down yet another 5.26% to 18 cents at present. That means this ASX All Ords stock has now lost more than 14% over just two trading days. That's even more notable when you consider the optimism flying around in the broader market today.
So, what's going on with Brainchip stock on the All Ords this week?
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Why has this ASX All Ords stock just tanked 14% in two days?
Well, it's hard to pin down. But there's a high likelihood that the volatility we've seen with this ASX All Ords stock this week has something to do with the big announcements we saw out of Brainchip last week.
On 25 July, Brainchip dropped its latest quarterly activities report. This report revealed that Brainchip ended the June quarter with US$10.9 million in cash, down from US$12.9 million at the end of the previous quarter. The company experienced a net cash outflow of US$3.9 million over the quarter, which was a slight reduction from the US$4.4 million outflow from the previous quarter.
However, customer cash inflows over the three months to 30 June came to just US$50,000, down from US$90,000 in the prior quarter.
This quarterly cash flow report came alongside a new capital-raising announcement. The ASX All Ords stock revealed that it had completed a $20 million institutional share placement program, as well as opening a $3 million share purchase program for retail investors. Both of these plans allowed shareholders to buy the newly issued 103.2 million shares for 19.3 cents each.
With these new shares hitting the markets, it's no real surprise to see the Brainchip share price under pressure this week. Remember, when an ASX All Ords stock issues more shares, the ownership stake in the company for existing investors is diluted if they don't pour in more capital.
At the current Brainchip share price, this AI stock is flat for 2024 to date but remains down by 50% over the past 12 months. Check it out for yourself below before you go:
