ARM 30% up over the weekend continues the crazy rally

ARM was the most traded stock today, with an unprecedented 30% up day-to-day.

A complete explosion of the stock:

Overall outlook of the market:

Let’s take a close look at ARM.

ARM Holdings experienced a significant surge on its last trading day, highlighted by its stock market debut which saw its value rise nearly 30%, affirming investor confidence and marking a strong Nasdaq debut with a valuation of nearly $60 billion​​. This substantial hike was also influenced by ARM's updated full-year profit outlook, where it now expects to earn between $1.20 and $1.24 per share on an adjusted basis, up from a prior view of $1 to $1.10 per share. This adjustment exceeds the estimates, indicating robust performance and positive future expectations​​.

Further driving investor interest, ARM's latest quarterly results surpassed expectations, with a reported Non-GAAP EPS of $0.29, beating by $0.04, and revenue of $824M, exceeding by $61.01M​​. This performance, along with an optimistic profit outlook, positions ARM as a notable player in the semiconductor and technology sector, reflecting its pivotal role in driving innovation and growth within the industry.

However, the company has also faced challenges, such as forecasting Q3 revenue below Wall Street expectations due to a delay in a major licensing deal. This has raised questions about the company's valuation and sustainable growth narrative, even as Arm aims to diversify beyond mobile phones into areas like data center servers and personal computer chips. For its second fiscal quarter ended in September, Arm reported a 28% revenue increase to $806 million, surpassing expectations. Yet, it also posted a net loss of $509 million for the quarter, largely due to employee stock compensation costs associated with its IPO​​.

Top institutional holders for ARM: