IB Net Payout Yields Model

Arm Holdings IPO Is Too Hot


Update - Sept. 14, 2023

Arm hit $65.50 in after-hours trading. The stock valuation has now reached $68 billion. 

  • Arm Holdings plc had a successful IPO, raising over $5 billion for SoftBank and pricing at the top end of the range.
  • The IPO was the largest since Rivian Automotive raised $12 billion, indicating an ominous sign for initial investors.
  • Arm Holdings stock quickly jumped to $60 in initial trading, pushing its valuation to $60 billion and a very stretched 20x sales.
The IPO market has been shut for a while, yet Arm Holdings plc (NASDAQ:ARM) came out with a hot public offering today. The semiconductor stock priced at the high end of the range and jumped in initial trading. My investment thesis is ultra Bearish on the stock, though realizing some hot IPOs can run to extreme valuations.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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