ARMverage rating for ARM stock is "Buy." The 12-month stock price forecast is $122.09, which is an increase of 7.62% from the latest price.
ARM trade ideas
On the Trend line to start finding its wayThe second trendline steadied the ship, knowing how far they wanted to let it go before they started a reversal. Also, the shaded area has been a dominant force as an area of change in direction. I wouldn't be surprised to see this soon.
Arm Holdings Slumps 14% in Premarket Trading Despite Q2 BeatShares of Arm Holdings plc ( NASDAQ:ARM ) plummeted in premarket trading on Thursday, shedding nearly 14% despite reporting better-than-expected fiscal first-quarter results. The British chipmaker's stock faced a sharp decline following the release of its quarterly results after the market closed on Wednesday.
Solid Earnings Overshadowed by Royalty Revenue Concerns
Arm Holdings reported record revenue of $939 million for the fiscal first quarter ended June 30, marking a 39% year-over-year increase and surpassing analyst expectations of $912 million according to Visible Alpha. The company also posted diluted earnings per share of 21 cents, significantly higher than the 10 cents reported in the same quarter last year and above the anticipated 16 cents.
The robust earnings were driven by a substantial 72% increase in licensing and other revenue, which reached $472 million. However, the upbeat results were overshadowed by concerns over royalty revenue, which, although it grew 17% to $67 million, fell short of forecasts. This shortfall was attributed to lower-than-expected sales of chips, which forms a critical part of Arm's business model.
Full-Year Guidance Maintained, but Market Unimpressed
Arm maintained its full-year guidance, which aligns with the consensus estimate, but this did not quell investor concerns. The company projected adjusted earnings per share between 23 cents and 27 cents for the current quarter, in line with previous guidance but below some analyst estimates. Notably, this quarter marked the first time Arm did not raise its outlook, a move that some analysts, including Needham's Charles Shi, interpreted negatively given the stock's high valuation.
Strategic Shift and Reporting Changes
Arm also announced a strategic shift in its reporting practices, deciding not to disclose unit chip shipment data going forward. The company cited the decreasing relevance of this metric as it pivots towards focusing on low-volume, high-value chips. This change reflects Arm's strategy to target higher-margin markets and products, leveraging its Armv9-based chips' penetration to drive future growth.
Market Reaction and Analyst Commentary
Despite a strong revenue and earnings beat, the market reacted negatively, with Arm's shares plummeting over 12% in after-hours trading after an 8% increase during the regular session. The stock, which has surged over 90% year-to-date in 2024, shows some potential for recovery, as indicated by a Relative Strength Index (RSI) of 31.31.
Analysts have mixed reactions to Arm's results and guidance. While the robust licensing revenue growth is a positive sign, the slower-than-expected royalty revenue and unchanged full-year outlook raise concerns about the company's ability to sustain its growth momentum amid a competitive and rapidly evolving semiconductor industry.
Conclusion
Arm Holdings' latest financial results showcase the company's strong performance and strategic focus on high-value products. However, the market's reaction underscores the challenges it faces in meeting high investor expectations and navigating the complexities of the semiconductor market. As Arm continues to adapt its business model and reporting practices, the coming quarters will be crucial in determining whether it can sustain its impressive growth trajectory and regain investor confidence.
ARM , US Stock153 below trendline breakdown possible
21 ema below close yesterday
if sustain tl below 150/145/135 to test soon
130s seems very likely for numerous reasonsWe have a market selloff right now, with the earnings for many tech companies falling under the knife, impacting all sectors. I don't think the dust has settled, we see moving averages climb to 100-130s and with room to fall on indicators, I wouldn't be surprised to see somesort of structured reversal at 130-140.
Good setup for Arm
Target 205.00, 280.00 .
Short term RSI divergence soon over if this rebound will successful stay above 188.75
Support 160.00
ARM Trend BreakAnother major trend break here on ARM. This one seems to be holding up better than the rest, but it did close below its ascending wedge. I'm watching for a move down to the other uptrend from April to see if it can hold there.
Inverse head and sholders Possibly inverse head and sholders as long as price rejects the 160.85 area. if it successfully rejects, i can see it going and testing the 170 price. If fails to find support at 160.85, i can see it going to the 147.20.
ARM May 28, 2024: A New Buy PointAt the close of May 28, 2024, NASDAQ:ARM close up strongly above MA-50 and also crossed above the trendline as show on the chart.
Hence it provides a buy point here with the expectation of making a new high in later this year.
160 is coming everything is maxed out needs a pauseVolume isn't volatile; slow movement every day to make it bullish, continuing the trend, but the trend can't continue without a retrace. Which is why 160 is coming.
Can it continue to 200 with divergenceThe RSI is at a divergent point, and it seems to be the end of the road for ARM, concluding that it does shake off any momentum from markets to pay attention to its correction. The indicators, except the stochastic, which is lagging, may need a while before catching its breath, but a sideway continuation pattern between 160-180 before 200 could play out here.
ARM HoldingsARM witnessed a strong rebound after forming a new higher low at 149.50$, violating the last peak 177.31 by today's session. then, the remaining above this peak 177.31, will confirm the major uptrend, which will push ARM to witness further rises near 185.32 - 194.50 - 205 - 212.50 in the short term.
The stop-loss lies below 169.60$.
the indicators are heading toward the positive side, which confirms the mentioned positive scenario.
The information and publications are not intended to be or constitute any financial, investment, commercial, or other types of advice or recommendations provided.
ARM. Setup look juicy into next. Will see where it closes today. Close under 180, and I'm favoring pullback, over 180 and I think we see another ATH move in July. Near 200.
a clear path to 180The question is, can it break the 180 and move on to 200? That's the question; the reset has begun even though it went to 155, which was the center line on the BB, but the stochastic is still at 60. Even though it declined, it is persistently holding this spot but is inconsistent in how far down it goes. With RSI at the high 50s, a trendline was also formulated; the bulls have every right to fight the bullish zone; although I Believe it can take it to mid-180, I also see it back in the 140s as the full reset hasn't occurred, so the sentiment of the market has been bullish incredibly tech reaching an all-time high of 500 seems to be driving the markets insanely crazy. Still, we have to follow basic 101 as well and see some relief in the mark. As the single moving average for 100 days gets closer, it could meet from a jump and retrace bouncing off the SMA and BB support levels. We shall wait & see.
Arm HoldingArm witnessed a sharp rebound in yesterday's session, violating the major resistance 164, and the confirmation of that breakout by remaining above 164, will confirm the major uptrend, which will trigger further rises near 176.55 - 185.32 - 190 - 196.50 - 212.50.
The stop-loss lies below 159.30.
the indicators are heading toward the positive side, which confirms the mentioned positive scenario.
The information and publications are not intended to be or constitute any financial, investment, commercial, or other types of advice or recommendations provided.
Pullback in channel until discount zoneIf this show a valid setup
-pullback in channel
-wait breakout retest
If break channel
-wait breakout retest
ARM - an optimistic count?Another stock that seems to have followed many of the tenets of EW theory. Will it continue to do so and finish up at the channel I have drawn for this chart?
$ARMNASDAQ:ARM showing great strength, with this cup n handle on the Daily, looks prime and ready for takeoff.
ARM Long Position TradeHello sorry my camera did not pick up this time but next time I should get the camera working. Here is a different strategy for today that I haven't shared with anybody on TradingView where I simply put on a large position and ride the market up in a high performing stock or sector. I use my VIX Rank Percentile histogram indicator "that you'll see in this video you can download from my profile " which tells me that the VIX is calm or not calm green bean safe time to hold the position and red being a riskier time to hold the position. I will hold this long position whenever my histogram is green, and I will take the trade off whenever I feel like it's a good time to take it off or maybe partially take it off if the market's getting a little shaky.
ARM ready for a move?Would ideally like to gap down on open to 160. If 160 holds will look to enter long targeting 165 then 170 but volume has to be there to support thesis. As always don't to forget to follow Quantum Edge Analytics across all socials.
- This is my opinion and not to be taken as financial advice. Always do your own research!!
