Why Arm Holdings Stock Sank Today

Core Viewpoint - Arm Holdings is facing significant pressure on its stock due to a global antitrust challenge initiated by Qualcomm, one of its major customers, which could impact its growth potential and valuation [1][2][5] Group 1: Stock Performance - Arm Holdings' shares declined by 7.5% at market close, with an intraday drop of up to 8.1% [1] - The decline in Arm's stock coincided with broader market losses, as the S&P 500 and Nasdaq Composite fell by 1.1% and 2%, respectively [1] Group 2: Antitrust Allegations - Qualcomm has launched a global antitrust campaign against Arm, filing complaints with competition authorities in Europe, the U.S., and Korea, alleging anticompetitive practices [2] - Qualcomm claims that Arm has shifted from an open licensing model to a restrictive one, which it argues stifles competition [3] Group 3: Arm's Defense - Arm has defended its business practices, labeling Qualcomm's allegations as a "desperate attempt" to gain a competitive advantage amid an ongoing commercial dispute [4] - The company asserts that its recent business model shift is part of a strategy to accelerate growth and enhance its position in the lucrative artificial intelligence market [4]