Arm's valuation is certainly high, but it is important to remember that the company has a dominant position in the semiconductor industry.
The price might rise by as much as 50% based on some analysts.
8 reasons why Arm's IPO is such a big deal:
1. Arm is a critical player in the semiconductor industry.
2. Arm has a dominant position in the market for mobile processors.
3. Arm is well-positioned to benefit from the growth of new markets.
4. Arm has a strong track record of innovation.
5. Arm has a loyal customer base.
6. Arm is a profitable company.
7. Arm has a strong management team.
8. Arm is IPO-ready.
Below are some disadvantages of ARMI:
1. Arm is facing increasing competition from other semiconductor companies.
2. Arm has a history of patent disputes.
What you have to know before you rush to buy $Arm Holdings(ARM)$ at its debut:
Prices IPO at $51 per share
Raising $5B at $54.5B valuation.
10x oversubscribed, according to Bloomberg.
100x PE? This is over 2x $NVIDIA Corp(NVDA)$ .
Net income in fiscal 2023 = $524m, at a valuation of $54b puts it at a P/E ~104.
Avoid buy at the first day high!
Make sure you research what happens to people who buy on IPO day highs...
The return on IPO prices are mixed for major IPOs; however, the returns on buying at first-day high are in red!!
At what price would you like to buy Arm?
Some investors believe that it is definitely worth waiting to see how things play out before investing in ARM.
Others argue that $30 is a bargain.
With 90% shares in Softbank and so many big names investing in it, some investors are sooooo bullish on the debut of Arm.
Will Arm’s valuation head for $60 billion tonight?
With so many questions in your head, you are recommended to find your answers in today’s market or these articles:
What you have to know before Arm's IPO?
Is Arm expensive? How much can it rise on the first day of trading?
Dive in ARM IPO: 8 Points Tells Why This IPO Such a Big Deal
Leave your comments and repost to win tiger coins!
Comments
Short short will be $10 soon
Sometimes Chicken, sometimes just the feathers. it looks like ARM has more feather Days ahead.
Bad. Most IPQ lost 70 or 90% lock period even FB, AMZN, PATH, SNOW...
just wait until the lock period is over and institutions can sell.
SoftBank pumped LMND went from 183 to 12 !! Think of this !!
More pain coming tomorrow. Wait and buy cheap