Why is MiniMax stock sliding today?
MiniMax stock experienced a significant drop of 5.8% on Monday, trading at HK$237.8 amid a widespread selling trend in Hong Kong's technology and artificial intelligence sector. This decline occurred amidst growing macroeconomic concerns and calls for a slowdown in AI development from top executives at major companies like Anthropic, OpenAI, and xAI.
The executives expressed alarm over the potential threats posed by AI to humanity, which could lead to decreased investment in the sector and negatively impact pure-play frontier labs such as MiniMax. Other Asian AI-exposed stocks, including Z.AI, also suffered losses on Monday and Tuesday. The pressure on technology stocks was further exacerbated by rising interest rates, inflation fears, and a sharp surge in oil prices this week.
Additionally, the US 10-year Treasury yield surged to 5%, a level not seen in years, amplifying the impact on growth-oriented, high-multiple stocks like MiniMax. Despite trading below its 52-week high of HK$1,330, MiniMax still trades at a premium to its 52-week low of HK$186.2, making it particularly sensitive to the rate-sensitivity dynamic.
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