Wall Street Analyst Warns of 20% Downside for Arm Stock
Friday, 17 May 2024, 14:25
Insights on Arm Stock Downside
Investors bid up Arm after earnings, but that was exactly the wrong decision. In the week since Arm Holdings (NASDAQ: ARM) released fiscal year 2024 results, shares of the UK-based semiconductor chip designer have gained 8%, surging past $114 a share.
The bad news is that, according to investment bank Bernstein, buying Arm's stock after earnings was exactly the wrong thing to do. In a report released Thursday, Bernstein argued that Arm's stock remains overpriced, and should actually be sold, not bought.
Key Points:
- Arm's sales grew only 21% in fiscal 2024, with declining net income.
- Fourth-quarter results showed significant momentum, but full-year performance could be different.
- Bernstein raised concerns about Arm's high valuation and moderate growth outlook, recommending to sell.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.