Is ARM The Stock Market IPO Savior?? 🌟 | ARM Stock Analysis | #investing

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#stockmarket #ipo #investingeducation #arm

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ARM Holdings PLC (ARM) is the newest member of the Nasdaq stock exchange. It completed its initial public offering (IPO) on September 14, 2023, and it became the largest IPO since 2021. For many market watchers, ARM's IPO was and still is a bellwether for the greater IPO market, as investor sentiment on new companies has generally been sour since the start of the bear market in 2021.

Arm is a designer of semiconductors and their components, but interestingly, the company does not fabricate the physical products. Instead, they sell their designs to other companies, which may tweak the designs before manufacturing them. Shockingly, over 99% of all smartphones are constructed using Arm-designed chips, and the company has its products included in over 250 billion electronic devices in total.

While there is not much historical information available about Arm, there is some data going back to 2020. From this, we can gather that 2020 was an exceptional year for the company, but financial performance has struggled to maintain that momentum into 2023. Revenue has stopped growing, and earnings have contracted. This is similar for many other semiconductor companies, but it makes Wall Street worry that Arm may not be the high-flying growth company many investors were hoping for.

This worrisome financial trend has led to a lackluster performance following Arm's IPO. It is still too early to judge how the company will perform into the future, but doubts about the company's current valuation have fueled a selloff below the company's IPO price.

Are you interested in investing in Arm? I would love to hear your thoughts in the comment section!

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Disclaimer:
This video is intended for educational and entertainment purposes only. This is not financial advice, and it is not a solicitation to buy or sell ARM or any other financial product/security. Investing involves risk, so please do not invest any capital that you are not willing to lose.

[TheMainStreetInvestor]

Thanks for the idea Buffalo! This video was made several days before posting, and since then, ARM has fallen below its IPO price. It is currently trading at $50.76 at the time of posting. What do you think - will ARM's stock price be higher than its IPO at the end of the year?