Arm’s Pricey Valuation Ratchets Up Need to Deliver on Earnings

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Arm’s Pricey Valuation Ratchets Up Need to Deliver on Earnings

Bloomberg05-08

(Bloomberg) -- Arm Holdings Plc is the most expensive stock among artificial intelligence hardware makers, despite trading nearly 30% below its peak. Wednesday’s earnings will need to offer bullish ...

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Wednesday’s earnings will need to offer bullish ...</p>\n\n<a href=\"https://finance.yahoo.com/news/arm-pricey-valuation-ratchets-deliver-130906188.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Arm’s Pricey Valuation Ratchets Up Need to Deliver on Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nArm’s Pricey Valuation Ratchets Up Need to Deliver on Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-08 21:09 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/arm-pricey-valuation-ratchets-deliver-130906188.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>(Bloomberg) -- Arm Holdings Plc is the most expensive stock among artificial intelligence hardware makers, despite trading nearly 30% below its peak. Wednesday’s earnings will need to offer bullish ...</p>\n\n<a href=\"https://finance.yahoo.com/news/arm-pricey-valuation-ratchets-deliver-130906188.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ARM","symbol_name":"ARM Holdings Ltd","start_time":0,"source_url":"https://finance.yahoo.com/news/arm-pricey-valuation-ratchets-deliver-130906188.html","article_id":"2433729618","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/bZMlfVkBSj0N_l_T_G3XDA--~B/aD03NzY7dz0xMjk2O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/bloomberg_markets_842/8ae5cab188283c13de3096f144d3edf4"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2433729618","pubTimestamp":1715173746,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":" -- Arm Holdings Plc is the most expensive stock among artificial intelligence hardware makers, despite trading nearly 30% below its peak. Wednesday’s earnings will need to offer bullish signals to justify that valuation.One Out of Every 24 New York City Residents Is Now a Millionaire. Americans AreRackingUp‘Phantom Debt’ That Wall Street Can’t Track. Trump’s Private Life Exposed in Intimate Stormy Daniels Testimony. The semiconductor designer, whose share price has more than doubled since its September initial public offering, may struggle to generate the kind of excitement that sent its stock soaring in February after a bumper revenue forecast — especially in an earnings season in which investors have been hard to impress.Chinese iPhone shipments jumped about 12% in March after Apple Inc. and i","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ARM":"ARM Holdings Ltd","AAPL":"苹果"},"translate_title":"Arm高昂的估值推高了实现盈利的需求","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ARM":1,"AAPL":0.9},"content_text":"(Bloomberg) -- Arm Holdings Plc is the most expensive stock among artificial intelligence hardware makers, despite trading nearly 30% below its peak. Wednesday’s earnings will need to offer bullish signals to justify that valuation. \nMost Read from Bloomberg\n\nTrump Judge Indefinitely Postpones Documents Case Trial\nOne Out of Every 24 New York City Residents Is Now a Millionaire\nAmericans Are Racking Up ‘Phantom Debt’ That Wall Street Can’t Track\nTrump’s Private Life Exposed in Intimate Stormy Daniels Testimony\n\nThe semiconductor designer, whose share price has more than doubled since its September initial public offering, may struggle to generate the kind of excitement that sent its stock soaring in February after a bumper revenue forecast — especially in an earnings season in which investors have been hard to impress. \n“People should temper their expectations as far as how well this will act with a positive result,” said Jay Woods, chief global strategist at Freedom Capital Markets.\nThe options market is implying an 11% move in either direction for Arm shares following results, according to data compiled by Bloomberg. The stock jumped 48% the day after earnings in February. \nThis earnings season has been good for AI-related companies able to show that their investments in computing gear will pay off. But investors have been quick to punish others, with Meta Platforms Inc. spooking equity markets last month when it revealed large AI spending plans, amid doubts over its revenue streams.\nSuper Micro Computer Inc. also saw its shares fall after reporting quarterly sales that fell just short of estimates. \nRead More: AI Hardware Stocks Get Pummeled Even as Big Tech Keeps Spending\nThat suggests Arm will have to give results and forecasts that far surpass Wall Street estimates for the stock to avoid a similar fate. The company is expected to report sales of $879.2 million in the fourth quarter, up 39% from the same period a year ago, according to data compiled by Bloomberg. Adjusted earnings are expected to be 30 cents per share, compared with break-even a year ago.\nAt 27 times sales projected over the next 12 months, Arm is more expensive than any stock in the Nasdaq 100. That includes Nvidia Corp., the biggest beneficiary of demand for AI computing hardware that’s seen its shares jump more than 500% since the end of 2022. \nMichael Sansoterra, chief investment officer at Silvant Capital Management LLC, is betting that Arm can meet the hype. The high valuation is being exacerbated by the limited number of shares available to trade as a result of Softbank Group Corp.’s roughly 90% stake, according to Sansoterra.\n“It is an expensive stock, but it’s also a stock that’s expanding into new markets and growing quickly,” he said in an interview. “Anytime they get bought or sold, you’re going to see a slightly higher volatility in the shares because of that smaller float.”\nTop Tech News\n\nChinese iPhone shipments jumped about 12% in March after Apple Inc. and its retailers slashed prices, official data showed, suggesting efforts to arrest an accelerating decline in sales are yielding early results.\n  \nApple unveiled a new artificial intelligence-focused iPad Pro and a larger iPad Air, aiming to reinvigorate a tablet lineup that has languished over the past two years.\n\nSoftBank is in talks to acquire Graphcore Ltd., a struggling British semiconductor startup once valued at $2.8 billion, according to people familiar with the deals.\nThe bounceback in Chinese stocks from their multi-year lows risks running out of steam unless the nation’s tech giants can deliver on their earnings next week.\nSteven Mnuchin, the former US Treasury Secretary, said he’s still interested in buying TikTok’s US operation from its Chinese owner, and believes the social media app’s critical video recommendation technology could be replicated.\n\nEarnings Due Wednesday \n\nPremarket\n  \nShopify\nVishay Intertech\nClear Secure\nSmartRent\nValens Semiconductor\n\nPostmarket\n  \nHubSpot\nAppLovin\nAmdocs\nMKS Instruments\nSolarEdge\nInstructure\nJamf Holding\nSiTime\nIonQ\nBlend Labs\nXperi\nPorch Group\n8x8\nConsensus Cloud\nLivePerson\n\n\nMost Read from Bloomberg Businessweek\n\nHow Uniqlo’s ‘Millennial Birkin’ Is Beating Designer Bags\nA New Kind of Power Company Will Put a Battery in Every Home\nTesla Pulls the Plug on Supercharger\nBoom Times Are Over for Food Startups, But That’s a Good Thing\nThe Company Preaching America’s Nuclear Revival\n\n©2024 Bloomberg L.P.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"hasMoreComments":false,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}