Arm Stock Falters on Cautious Analyst Coverage

Needham calls ARM a “hold”

Shares of Nasdaq newbie Arm Holdings (NASDAQ:ARM) are 1.1% lower at $62.88 at last glance, one day after the semiconductor and software concern went public. The company’s initial public offering (IPO) was successful, with ARM jumping nearly 25% in the previous session from $51.

Nevertheless, Needham initiated coverage with a “hold” rating, saying the company’s valuation looks “full.” In his note, Needham analyst Charles Shi said, “Arm’s architecture is a foundation of smartphones, but we believe the world is entering a post-smartphone era that will see high-performance computing and IoT lead the next phase of semiconductor growth.”

There’s not much to comment on concerning Arm stock’s technical setup. With just a day of trading under its belt, every tick higher marks a new year-to-date high, including today’s peak of $69 earlier in the session.

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