🔥 ARM IPO: Worth the hype? Should I chase? What even is it?

14 de set. de 2023

ARM DD:

Before you read this, understand that trying to buy IPOs when they begin trading isn't guaranteed and if you market buy, you will get roasted. It's not good to chase IPOs. No matter if this is the next AAPL TSLA and AMZN combined, do not chase and only make wise and calculated decisions while trading.

I've been waiting for this IPO for a while. It's finally here. It might be the most over anticipated IPO in a while. Trade carefully. Do not chase blindly. Have a plan. Trade the plan. If it doesn't come, move on.

If you learn something or want to trade with me, give me a follow & join my community. Thanks.

• IPO valued @ 55B.
• Around $51 per share.
  
• They are only releasing 9% of the total shares to the public. So it has a tiny float.
  
• SoftBank is the owner, they bought ARM 7 years ago.
  
• The floor for me is 40B USD valuation. Meaning, around $38.50 is support. Where did I get that number? NVDA was closing on buying ARM for 40B USD in 2020.
  
• NVDA, INTC, AMD, AAPL, GOOG, TSM, Samsung, are all interested in investing in ARM.
  

What does ARM do?

• ARM is not a chip manufacturer.
  
• ARM designs chips & system processors & holds patents to chips and they license their technology to other big tech like AAPL, NVDA. Hence, NVDA wanted to buy them for 40B USD.
  

THE POSITIVES:

• SoftBank bought out someone's 25% stake in ARM recently. For 16B USD. That puts it at a FWB:64B valuation in their eyes. That means the owner of ARM expects ARM to surpass 64B USD.
  
• NVDA CEO loves ARM, but NVDA failed to acquire it.
  
• NVDA CEO has been selling NVDA. Around 150k shares this year. Last sale 14M USD on 9/11/23. IMO he's freeing up to buy ARM @ IPO. Remember SoftBank is a 90% owner. Everyone who wants it gets it at IPO. Yes, even NVDA CEO.
  
• The float is tiny, and asset managers .
  
• TSM expressed interest of 100M USD investment
  
• This might be the most hyped IPO in a while.
  

THE NEGATIVES:

• SoftBank is a known dumper.
  
• SoftBank bought ARM in 2016 for 32B. They tried flipping it in 2020 for 40B USD to NVDA. So they were happy with a 8B flip USD in 4 years. Sus. Shows signs that if ARM does well, they'll unload.
  
• Because SoftBank are known dumpers, once they dump one time, investors will get shook.
  
• Their net income is low. Under 550M.
  
• Their revenue is around 2.7B.
• Their net income dropped YoY.
  

Again, I will evaluate if I'm buying this and post my entries/ exits in my community. Welcome to join.

Stay tuned.

14 de set. de 2023

Trade ativo

Snagged just under $56. Sold at least 1/2 @ +10%.

14 de set. de 2023

Nota

15 second chart looks good. These charts have wild swings tho, but nonetheless, it's something.

14 de set. de 2023

Nota

Breakout alert on point also:
tradingview.com/chart/?mind=NahJW0bFROeIpodNwIXvpA&symbol=NASDAQ:ARM

18 de set. de 2023

Nota

Hope this DD benefited somebody. Was a clear winner and most of us were able to get in at $56. Trade safe & welcome to join our community (link in profile).