MiniMax plunged as much as 15% after JPMorgan cut its price target sharply, fueling a selloff in the volatile AI stock amid growing doubts about its growth trajectory.
JPMorgan cut its price target on MiniMax from HK$12 to HK$8, citing decelerating subscriber growth and margin compression in its AI platform business. The shares fell as much as 15% intraday in Hong Kong, extending a 40% decline from the January high as institutional investors dumped positions.
JPMorgan cited decelerating subscriber growth and margin compression in MiniMax's AI platform business, leading to a 33% price target cut.
Shares dropped up to 15% intraday, hitting a 52-week low before recovering slightly.
The downgrade removes the last bullish rating; only hold and sell ratings remain, suggesting further downside risk.
MiniMax shares plunged in Hong Kong trading after JPMorgan cut its price target to HK$8 from HK$12, citing slowing AI subscription revenue and rising competition. The downgrade, the second this quarter, wiped out nearly 15% of the stock’s value in a single session. With no buy ratings left on the street, investors braced for further declines as liquidity dried up.
JPMorgan slashed its price target on MiniMax by 33%, citing slowing revenue growth from its AI platform and intensifying competition, sparking a double-digit selloff.
JPMorgan cut its target to HK$8 per share, down from HK$12, implying limited upside from current levels and reflecting a shift to a cautious view on the AI sector.
MiniMax shares have fallen over 40% since January, as investors rotated out of speculative AI stocks amid rising interest rates and disappointing earnings from the sector.