Why I'm Cautious About Investing in ARM's IPO
@TigerOptions:
The much-anticipated IPO of chip design firm Arm has arrived. Illustration shows Arm Ltd logo The excitement around $Arm Holdings(ARM)$'s upcoming initial public offering (IPO) is undeniable, but I find myself taking a more cautious stance. While the company's potential is undeniable, history has shown that many major IPOs struggle to outperform the S&P 500 in the long run. The reason for my hesitation in discussing this until now, despite the growing excitement, is that I believe entering this stock immediately following its IPO might be premature. The top 10 U.S. IPOs from the past four years have averaged a 47% drop from their first-day closing prices, per LSEG data, with investors buying at intra-day peaks seeing a 53% loss on average. It's