Why ASML Holdings Plunged Today
Rumors of a new China-made DUV system caused a sell-off of the high-flying semiconductor king.
Overview
Shares of ASML Holdings (NASDAQ: ASML) fell on Monday, plunging as much as 8.2%, before recovering to a 6.7% decline as of 2:30 p.m. EDT.
The news has been terrific for ASML as of late, with the stock running up over 75% at one point in late June, and its valuation exceeding 60 times earnings.
Details
That kind of run-up leaves even the best stocks vulnerable to a pullback at the slightest hint of negative news. And investors got a negative rumor today from tech publication The Information, which reported that China is beginning to make machines that will compete with ASML's.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.