Arm Holding Shares Will Open For Quote At 10:10 a.m., Will Open For Trade After 10:20 a.m.; ADSs Priced At $51. Arm IPO.
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NewsTranscript
00:00 Arm Blockbuster IPO in a move that's been making waves in the tech industry.
00:06 Arm priced its IPO at $51 per share, valuing the company at a staggering 54 billion.
00:15 SoftBank will still maintain about 90% ownership of the company after the IPO.
00:21 And here's an interesting twist.
00:23 Major Arm customers like Apple, Google, Nvidia, and Samsung are all on board as shareholders.
00:32 Even Amazon, a tech giant itself, uses Arm CPU designs in some of its server chips.
00:39 But the bigger question is, does this valuation make sense for a chip company?
00:45 Let's dig deeper into that shortly.
00:48 If we take a look here, Arm's valuation would be exceedingly rich, right?
00:54 The only other player that we could maybe compare it to is maybe Nvidia.
00:58 At 54 billion, Arm would carry a price-to-earnings multiple of about 104 based on profits in
01:08 the latest fiscal year.
01:10 And you know what else here is the issue is that it's probably not going to open at 51.
01:15 It's probably going to open up at 60 or 65 or something higher than that.
01:19 Should we do this?
01:20 Let's do the old, let everybody give their thought process where this stock's going to
01:26 open.
01:27 Because we know the IPO is at 51, but they don't open there.
01:29 Right now I can see bids littered in the book, like just littered.
01:32 You know, some people, somebody's bidding $200.
01:34 I mean, that's a marketable limit order where they just want to be filled on the opening
01:37 print no matter what.
01:39 But could it open at 70?
01:42 Let's got some ideas at 105, 69, 82, 54.
01:47 I'm going with 70 bucks.
01:49 Money Mitch, where are you going?
01:50 75.
01:51 75, 70.
01:52 Joe, are you going to go 70 or 1?
01:55 For some reason, I think it's going to, I don't know where it's going to open.
01:59 I think it's going to trade at 80 somehow.
02:01 I don't know if it's going to open it.
02:04 Yeah.
02:05 But I mean, you're like, like I said, I think if there's anything in the market that I probably
02:11 have less information on, no information on is this.
02:15 I mean, for me, I mean, if I was, you know, any of these big shareholders, man, I'd have
02:24 offers out there.
02:25 I mean, you know, stacked up, you know, 5,000, 70, 10,000 at 75, 100,000 at 80.
02:35 I mean, I don't know.
02:36 Can they sell?
02:37 I mean, is there a lockup period?
02:38 Can anybody sell this thing?
02:40 I mean, I mean, that's just the way I think it.
02:43 Those kind of valuations.
02:46 Wasn't someone trying to take this stock out or this company out for a while?
02:50 Or did I make that up?
02:52 Wasn't someone like in a deal trying to take them out?
02:56 Oh, no, for sure.
02:57 It was, it was, wasn't it Nvidia trying to buy them years ago?
03:00 I think Nvidia, yeah, rules.
03:01 It was Nvidia.
03:02 It was in September 21.
03:04 Of course, Chad GPT helping out here.
03:07 Nvidia was trying to acquire arms.
03:10 And so it was Nvidia in 2021, September.
03:14 Are they all over everything?
03:15 Is anybody smarter than Nvidia?
03:18 Because like now you got arm out here.
03:20 They were even trying to buy arm as well.
03:21 Imagine if they had arm to just imagine the power.
03:25 Of course, the UK fought back big on this.
03:29 So yeah, that's why it kind of just died out really quickly.
03:33 They kind of knew that if they did it, it probably wouldn't go through.
03:37 Man, could you imagine that powerhouse though?
03:40 It's probably, it would have been the powerhouse.
03:42 That's why they already knew.
03:43 The powerhouse.
03:45 So this is going to be compared to Nvidia.
03:48 When it's publicly traded, it's I'm going to be pair trading arm probably with Nvidia.
03:53 So you look here, maybe we're light at 70 on this opening price.
03:58 It's going to be exciting.
03:59 I ain't buying it.
04:01 Not buying it.
04:02 Full disclosure.
04:03 I'm not trading it even, but it's fun to watch and it's going to be fun to watch.
04:06 They typically open around 11 o'clock.
04:08 So it isn't going to open at 930, probably not going to open at 10 or 1030.
04:12 It's usually about an hour and a half after the open.
04:13 So look for this third trading somewhere between 11 and 12 o'clock.
04:17 And I think the opening tick's going to be $70.
04:20 Dennis, how long will you wait for this to trade before, you know, like, I mean, like
04:25 remember when we used to have Fari on, Hey Fari, if you're listening, we miss you.
04:29 But remember Fari would wait like almost three months worth of data, right?
04:34 I know Dennis, you got a six months.
04:36 I think he does.
04:37 Yeah.
04:38 Six months.
04:39 I'll wait a week.
04:40 I usually wait a week, a week, let it calm down.
04:43 I'll wait a week depending on what it is.
04:45 If it's small cap, I'm never going to trade it all because, you know, I don't really love
04:48 small caps, but yeah, usually about a week.