📈 Arm’s Nasdaq Debut

Chip design superstar, Arm Holdings, had a smashing debut on the Nasdaq, giving investors quite a treat.

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— Warren Buffett

👋 Friends, Rallie here. The newsletter lighting up your inbox like a trending ticker on the Nasdaq. 

On the menu:

  • 📈 Arm’s Nasdaq Debut

  • 🗞️ Headlines That Hit

  • 📈 Refresh: IPO

  • 💯 Top Tweets

The Rallie Recap

👀 Chip design superstar, Arm Holdings, had a smashing debut on the Nasdaq, giving investors quite a treat. Here's what went down:

  • It was a hot start to Thursday for one company! After pricing its IPO at $51 a share, Arm's stock soared almost 25% on its first day.

  • What They Do: Arm specializes in designing architectures for computer processors, the blueprints that act as the foundation for a huge chunk of today's digital devices.

  • Big Valuation: The company kicked off with a valuation close to $60B USD. I think we just heard champagne pop…

  • And get this… SoftBank, which made Arm private in 2016, owns a whopping 90% of the outstanding shares.

  • Comparison Time: At its current valuation, Arm's price-to-earnings ratio is a tad over 110, similar to Nvidia’s, a competitor manufacturer of graphics processors and mobile technologies. However, Nvidia boasts a much higher growth forecast.

  • Interestingly, many of Arm’s royalties stem from products launched between 1990 and 2012. Arm's CFO, Jason Child, likens them to the evergreen Beatles songs that never stop earning.

  • Future Projections: Arm sees the market for its chip designs reaching about $250B USD by 2025, pointing to the increasing demand in areas like data centers and cars.

  • Essential Tech: Arm's technology underpins almost every smartphone chip, essentially defining how its heart, the central processor, beats.

  • Notably, tech giants like Apple, Google, Nvidia, and Samsung bought shares. Underlining Arm’s monumental influence in the chip world.

  • SoftBank’s CEO, Masayoshi Son, highlighted Arm's vital role in AI chip technology, linking it to the booming AI and machine learning scene.

  • What’s Next? This debut might reignite interest in tech IPOs, which have taken a backseat for some time. And guess what? So far, Arm’s IPO is the tech star of 2023.

Headlines That Hit

The Rallie Refresh: IPO

📈 You've heard the buzzword - IPO. But let’s dive deeper into the fascinating world of Initial Public Offerings.

  • As mentioned, IPO stands for Initial Public Offering. It’s a company’s grand entrance onto the public stock market stage.

  • Private vs. Public: Before an IPO, a company is like a private club—only a few can get in. Post-IPO? It's a party and everyone's invited to buy shares!

  • Why Go Public? Here’s the juicy bit:

    • 💰 Moolah! Companies can raise capital to invest, expand, or reduce debt.

    • 🏆 Credibility & Exposure: Being on the stock market can up a company's street cred.

    • 🎁 Employee Benefits: Public companies can offer stock options or shares as perks more easily.

  • But, there’s paperwork! Companies can't just waltz onto the stock market. They need to provide financial documents, undergo audits, and meet regulatory standards.

  • Fun fact: The company’s share price can go up (Yay! 🚀) or down (Ouch! 📉) on the first day based on demand.

There you have it, the stock market is more than just numbers; it's a vibrant, dynamic world of dreams, risks, and rewards. Happy investing!

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DISCLAIMER: This is not financial or legal advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions