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A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. Qualcomm (QCOM.O) sees 10% sequential sales growth in smartphones given overall Android smartphone restocking. On the other hand, Arm only guided for mid to high single-digit sequential sales growth for its royalty revenues, the brokerage added. Arm on Wednesday forecast a third-quarter revenue range with a midpoint of $760 million, below analysts' estimates of $767.84 million, according to LSEG data. But its annual revenue forecast was above estimates, as it benefited from a surge in companies designing new chips to tap the boom in artificial intelligence applications.
Persons: Dado Ruvic, Frank Lee, Lee, Nvidia's, Justin Sumner, Arsheeya, Shailesh Organizations: REUTERS, Holdings, Apple, Qualcomm, HSBC, Voya Investment Management, Thomson Locations: Bengaluru
Arm’s public-market journey starts with a stumble
  + stars: | 2023-11-09 | by ( ) www.reuters.com   time to read: +2 min
A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsLONDON, Nov 9 (Reuters Breakingviews) - Investors in the $56 billion semiconductor group Arm may be in for a bumpier ride than they hoped. The good news is that CEO Rene Haas expects revenue in the fiscal year to March of roughly $3 billion, in line with analysts' expectations. The less good news, which dragged Arm’s shares down 8%, is that Haas said revenue in the fiscal quarter to December might be anywhere from $720 million to $800 million. Admittedly, at the midpoint of the range that’s only $10 million below the mean analyst forecast, per LSEG.
Persons: Dado Ruvic, Rene Haas, Haas, Liam Proud, Lisa Jucca, Streisand Neto Organizations: REUTERS, Reuters, X, SEC, Thomson
REUTERS/Dado Ruvic/Illustration Acquire Licensing RightsNov 8 (Reuters) - Semiconductor company Arm Holdings (O9Ty.F), on Wednesday gave a fiscal third-quarter sales outlook below Wall Street estimates, with the company attributing the forecast to a large deal that will likely land later than expected. Arm became publicly listed again in September after Japan's SoftBank Group (9984.T), which still owns more than 90% of Arm, sold off some of its shares. For the current fiscal third quarter, Arm expects a revenue range with a midpoint of $760 million, below analyst estimates of $767.84 million, according to LSEG data. Arm said that royalty revenue for the fiscal second quarter declined to $418 million, below analyst expectations of $420.3 million, according to data from Visible Alpha. Child told Reuters that Arm's second quarter royalty revenues still reflected a chip glut that affected the chip industry broadly.
Persons: Dado Ruvic, Japan's, Ben Bajarin, Jason Child, Child, Stephen Nellis, Max A, Yuvraj Malik, Aurora Ellis, Lisa Shumaker Organizations: REUTERS, - Semiconductor, Arm Holdings, Wednesday, Analysts, Creative, Reuters, Nvidia, Intel, Alpha, Thomson Locations: San Francisco, Bengaluru
The British company gets most of its revenue from the smartphone market, in which it has a 99% share across Google's Android and Apple's iOS devices. Arm shares last closed at $54.08, compared with the IPO price of $51. Such growth would benefit SoftBank, which told investors ahead of the Arm IPO that it plans to remain the majority owner in the company it considers its crown jewel. But some brokerages, including HSBC, urged caution, saying Arm's shares could remain range-bound as uncertainty over a smartphone market recovery pressures earnings. At least 17 brokerages started covering Arm, with an average rating of "buy" and a median price target of $63.50.
Persons: Dado Ruvic, Goldman Sachs, TD Cowen, Roshan Abraham, Savio D'Souza, Anil D'Silva, Shounak Organizations: REUTERS, Holdings, Wall Street, SoftBank, J.P.Morgan, British, Citi, Deutsche Bank, Rosenblatt Securities, Philadelphia Semiconductors, HSBC, Thomson Locations: brokerages, Philadelphia, Bengaluru
Arm shares last closed at $54.08, about two dollars below their IPO price. TD Cowen said Arm faces some challenges from the weak smartphone market, but its current revenue represented an "under-monetization of its importance to the industry". Such growth would benefit SoftBank, which told investors ahead of the Arm IPO that it plans to remain the majority owner in the company it considers its crown jewel. But some brokerages, including HSBC, urged caution, saying Arm's shares could remain range-bound as uncertainty over a smartphone market recovery pressures earnings. But by 8 am ET on Monday, at least 15 brokerages started covering Arm with a mean rating of "buy" and a $60 median price target.
Persons: Dado Ruvic, Morgan, Goldman Sachs, TD Cowen, Roshan Abraham, Savio D'Souza, Anil D'Silva Organizations: REUTERS, Arm Holdings, SoftBank, Citi, Deutsche Bank, Mizuho, HSBC, Thomson Locations: brokerages, British, J.P, Morgan, Bengaluru
Arm surged on its first day on Wall Street and has fallen every day since then. That followed a Bernstein "underperform" rating with a $46 price target earlier this week, and a "hold" assigned to Arm by Needham and Company on Sept. 16. Neutral and negative stock ratings are much less common on Wall Street than "buy" recommendations or other positive ratings. Still, the marketing automation firm's stock remains above the $30 IPO price. The declines in Arm, Instacart and Klaviyo on Friday were in contrast to a 0.3% gain in the Nasdaq (.IXIC).
Persons: Dado Ruvic, Jake Fuller, Instacart, Bernstein, Klaviyo, Noel Randewich, Lance Tupper, Kirsten Donovan Organizations: REUTERS, Arm Holdings, Uber Technologies, Susquehanna, Needham, Company, Nasdaq, Thomson Locations: Klaviyo
REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsSept 21 (Reuters) - Arm Holdings' stock on Thursday dipped for the first time below its initial public offering price, while short sellers appeared to be betting against the chip designer just a week after its Wall Street debut. Shares of Klaviyo (KVYO.N) which debuted on Wall Street on Wednesday, finished up 2.9% at $33.72 versus the marketing automation firm's $30 IPO price. Suggesting short sellers are betting against Arm, about 14 million of its shares were on loan, equivalent to 8% of the stock's free float, data and analytics company Ortex said. Short sellers borrow stocks to short them, and the relationship between shares on loan and shorted is normally close, according to Ortex. Arm shares appear highly shorted compared to other recent IPOs.
Persons: Dado Ruvic, Ortex, Peter Hillerberg, Noel Randewich, Lewis Krauskopf, Lance Tupper, Richard Chang Organizations: REUTERS, Arm Holdings, Nasdaq, Federal, U.S, Thomson
Among other companies that have been gearing up for U.S. stock market listings are German premium footwear maker Birkenstock Holding and Vietnam internet company VNG Corp (VNZ.HNO). Chip designer Arm's stock on Wednesday hit a low of $51.52, coming close to its $51 IPO price in this year's biggest IPO last Thursday. Shares of grocery delivery app Instacart, which debuted Tuesday, fell to a low of $29.96, below their $30 IPO price. Klaviyo also surrendered most of its initial gains, hitting a low for the day of $30.26, just above its $30 IPO price. Arm and Instacart were "pumped up to do the IPO," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
Persons: Dado Ruvic, Robert Pavlik, Klaviyo, Jerome Powell, haven't, , Jake Dollarhide, Ortex, Peter Tuz, Mark Luschini, Janney Montgomery Scott, Caroline Valetkevitch, Savyata Mishra, Niket, Lewis Krauskopf, Noel Randewich, Marguerita Choy, Stephen Coates Organizations: REUTERS, Arm Holdings, Investment, Dakota Wealth, Birkenstock, VNG Corp, Federal, Nasdaq, Longbow, Management, Chase Investment, People, Thomson Locations: Fairfield , Connecticut, Vietnam, Tulsa , Oklahoma, Charlottesville , Virginia, Bengaluru, New York, San Francisco
REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsNEW YORK, Sept 20 (Reuters) - Shares of Arm Holdings fell for a fourth straight session on Wednesday after the chip designer's stellar market debut last week, with short seller interest picking up. That was up from 5.12 million shares on loan, or 2.7% of the stock's free float, on Tuesday. Short sellers need to borrow a stock to short it, and the relationship between shares on loan and shorted is normally quite close, Ortex said. Arm and Instacart were "pumped up to do the IPO," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. Arm also has a limited number of publicly traded shares, with SoftBank (9984.T) holding a roughly 90% stake.
Persons: Dado Ruvic, Ortex, Peter Tuz, Caroline Valetkevitch, Lewis Krauskopf, Saqib Iqbal Ahmed, Lance Tupper, Richard Chang Organizations: REUTERS, Arm Holdings, Chase Investment, People, Thomson Locations: Charlottesville , Virginia
With short sellers looking to profit from the stock, it closed at $55.17 after touching a high of $69 on Friday. Arm shares underperformed the Philadelphia semiconductor index (.SOX), which closed down 0.96% on Tuesday as rising bond yields weighed on growth sectors such as technology. Short sellers need to borrow a stock to short it, and the relationship between shares on loan and shorted is normally quite close, according to Ortex. By comparison, Tesla (TSLA.O), a stock with a similar percentage of shorted shares, has a cost to borrow at 0.48%, Ortex said. Arm's higher cost to borrow "can be an indication that the demand to borrow, and short, the stock is high," Hillerberg said.
Persons: Dado Ruvic, Daniel Morgan, Morgan, Thomas Martin, Ortex, Peter Hillerberg, Hillerberg, Needham, Lewis Krauskopf, Sinéad Carew, Lisa Bernhard, Mark Potter, Matthew Lewis Organizations: REUTERS, Arm Holdings, ARM, Nvidia, GLOBALT Investments, Bernstein, underwriters, Klaviyo Inc, Thomson Locations: Philadelphia, Atlanta, New York
[1/2] A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. The tech investment behemoth raised nearly $5 billion from Arm's offering while retaining 90.6% of the firm. Known for debt-fuelled acquisition sprees, SoftBank founder and CEO Masayoshi Son flagged in June that the company was shifting back into "offence mode" as he highlighted the potential of artificial intelligence. That's after a year of "defence mode" when tech valuations crashed amid higher interest rates and global banking jitters. Few companies in SoftBank's investment portfolio have demonstrated commercial utility in AI, analysts said.
Persons: Dado Ruvic, behemoth, Masayoshi, Yoshimitsu Goto, SoftBank, SemiAnalysis, Kyle Stanford, There's, Amir Anvarzadeh, PitchBook's Stanford, Anton Bridge, Miyoung Kim, Edwina Gibbs Organizations: REUTERS, Rights, Arm Holdings, SoftBank, HK, Vision, Nvidia, Asymmetric Advisors, Thomson Locations: British
[1/2] A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. The tech investment behemoth raised nearly $5 billion from Arm's offering while retaining 90.6% of the firm. Known for debt-fuelled acquisition sprees, SoftBank founder and CEO Masayoshi Son flagged in June that the company was shifting back into "offence mode" as he highlighted the potential of artificial intelligence. That's after a year of "defence mode" when tech valuations crashed amid higher interest rates and global banking jitters. Few companies in SoftBank's investment portfolio have demonstrated commercial utility in AI, analysts said.
Persons: Dado Ruvic, behemoth, Masayoshi, Yoshimitsu Goto, SoftBank, SemiAnalysis, Kyle Stanford, There's, Amir Anvarzadeh, PitchBook's Stanford, Anton Bridge, Miyoung Kim, Edwina Gibbs Organizations: REUTERS, Rights, Arm Holdings, SoftBank, HK, Vision, Nvidia, Asymmetric Advisors, Thomson Locations: British
Nasdaq plans to list options on Arm Holdings across all six of its exchanges, a spokesperson for the exchange said on Friday. Other options exchange operators, Cboe Global Markets (CBOE.Z) and Intercontinental Exchange's (ICE.N) New York Stock Exchange, did not immediately respond to a Reuters request for comment on their own plans to list ARM options. "I have every reason to believe that when ARM options are listed they will be very popular," Steve Sosnick, chief strategist at Interactive Brokers, said. Arm Holdings is of significant interest to retail investors, Dan Raju, chief executive at online brokerage firm Tradier, said. I expect the listing of options to also see an initial surge in options activity followed by a tapering," he said.
Persons: Dado Ruvic, Steve Sosnick, Sosnick, Dan Raju, Saqib Iqbal Ahmed, Richard Chang Organizations: REUTERS, SoftBank's, Holdings, Nasdaq, Arm Holdings, Cboe, New York Stock Exchange, ARM, Interactive, Facebook Inc, Facebook, Thomson Locations: New
This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. The long reach of ArmArm shares surged almost 25% on its first day of trading on New York's Nasdaq, and a further 6% in extended trading. "ECB interest rates have reached levels that … will make a substantial contribution to the timely return of inflation to the target," the bank's council said. Focus on the coreThe U.S. producer price index, which measures wholesale prices, rose a seasonally adjusted 0.7% in August — far more than the 0.4% estimate — and 1.6% from a year earlier.
Persons: Rene Haas, , Berkshire Hathaway, Yun Li Organizations: Arm Ltd, Nasdaq, CNBC, U.S, Dow Jones, EU, ECB, PPI, HP Warren, HP Locations: New York, U.S
A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsSept 14 (Reuters) - SoftBank's chip designer Arm Holdings (ARM.O) is set to debut on the Nasdaq on Thursday, in what is expected to be the biggest test for the U.S. IPO market after a listing drought that lasted for nearly 16 months. Hopes of a revival in the IPO market largely depend on the success of the high-profile listings of Arm and other marquee startups, including grocery delivery firm Instacart and marketing firm Klaviyo. Arm also told investors its royalty fees, which account for most of its revenue, were accumulating since it started collecting them in the early 1990s. Royalty revenue came in at $1.68 billion at the latest fiscal year, up from $1.56 billion a year ago.
Persons: Dado Ruvic, iPhones, it's, Susannah Streeter, Hargreaves Lansdown, Goldman Sachs, JPMorgan Chase, Manya Saini, Niket, Arun Koyyur Organizations: REUTERS, Arm Holdings, Nasdaq, U.S, Apple, Intel, London Stock Exchange, SoftBank, Android, Nvidia, Devices, Broadcom, Qualcomm, Micron Technology, Barclays, JPMorgan, Mizuho Financial Group, Thomson Locations: Samsung's, China, New York, Bengaluru
SoftBank-backed Arm's long march to $54.5 bln US listing
  + stars: | 2023-09-14 | by ( ) www.reuters.com   time to read: 1 min
The Arm Ltd logo and a U.S. flag are seen in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File photo Acquire Licensing RightsSept 14 (Reuters) - Arm Holdings (ARM.O) secured a $54.5 billion valuation in its U.S. initial public offering (IPO) on Wednesday, seven years after its owner SoftBank Group (9984.T) took the chip designer private for $32 billion. The Japanese investment giant sold 95.5 million American Depositary shares of Arm at $51 apiece to raise $4.87 billion in the listing. Last month, SoftBank signed a deal to buy the 25% stake it did not already own in Arm from its $100 billion Vision Fund, enabling it to sell fewer Arm shares in the IPO. Below is a timeline of key events:Reporting by Manya Saini in Bengaluru; Editing by Janane Venkatraman and Maju SamuelOur Standards: The Thomson Reuters Trust Principles.
Persons: Dado Ruvic, SoftBank, Manya Saini, Janane Venkatraman, Maju Samuel Organizations: REUTERS, Arm Holdings, SoftBank, Vision, Thomson Locations: U.S, Bengaluru
A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsNEW YORK, Sept 14 (Reuters) - Investors looking to bet against the soaring shares of newly-listed Arm Holdings (ARM.O) may have to wait at least a day before the stock becomes available for shorting, analysts said. Shares in SoftBank's Arm Holdings (ARM.O) opened 18% above their offer price in their Nasdaq debut on Thursday, valuing the British chip designer at nearly $60 billion in its return to the public markets after seven years. "I have every reason to believe that when ARM options are listed they will be very popular," said Steve Sosnick, chief strategist at Interactive Brokers. Arm shares were last up 15.80% at $59.06.
Persons: Dado Ruvic, Ihor Dusaniwsky, Dusaniwsky, Steve Sosnick, Saqib Iqbal Ahmed, Nick Zieminski Organizations: REUTERS, Arm Holdings, Nasdaq, Partners, Interactive, Thomson Locations: lendable
SoftBank's Arm discusses pricing IPO at $52 per share-source
  + stars: | 2023-09-13 | by ( ) www.reuters.com   time to read: +1 min
A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. If this pricing is finalized, it would be above Arm's indicated $47-$51 price range and would raise $4.97 billion for SoftBank, based on 95.5 million shares sold. It would infer a valuation on Arm on a fully diluted basis of $55.5 billion. Arm did not immediately respond to a request for comment. Reporting by Anirban Sen in New YorkOur Standards: The Thomson Reuters Trust Principles.
Persons: Dado Ruvic, Anirban Sen Organizations: REUTERS, Arm Holdings, Thomson Locations: New York
A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. Yet even with this lower valuation, SoftBank fares better than its $40 billion deal to sell Arm to Nvidia Corp (NVDA.O), which it abandoned last year amid opposition from antitrust regulators. Arm priced its IPO at $51 per share, at the top of its indicated range, raising $4.87 billion for SoftBank based on 95.5 million shares sold, the company said on Wednesday. Weak mobile demand during a global economic slowdown has caused Arm's revenue to stagnate. Sales in China contributed 24.5% of Arm's $2.68 billion revenue in fiscal 2023.
Persons: Dado Ruvic, Echo Wang, Anirban Sen, Sandra Maler, Greg Roumeliotis, Richard Chang Organizations: REUTERS, Arm Holdings, SoftBank Group Corp, Nvidia Corp, Reuters, Apple, Nvidia, Devices, Intel, Samsung Electronics, stagnate, Sales, Thomson Locations: New York, China, United States
A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. The IPO raised $4.87 billion for SoftBank based on 95.5 million shares sold. It infers a valuation on Arm on a fully diluted basis of $54.5 billion, making it the largest stock market debut since electric car maker Rivian Automotive Inc (RIVN.O) in 2021. Arm did not immediately respond to a request for comment. Reporting by Echo Wang and Anirban Sen in New York Editing by Greg RoumeliotisOur Standards: The Thomson Reuters Trust Principles.
Persons: Dado Ruvic, Echo Wang, Anirban Sen, Greg Roumeliotis Organizations: REUTERS, Arm Holdings, Rivian Automotive Inc, Thomson Locations: New York
Arm may price its IPO above the indicated price range and will decide on how much it will sell its shares for on Wednesday, that source and a second person with knowledge of the matter said. Arm was considering publishing a revised price range that would have been higher, reflecting the strong investor demand. Pricing the approximately $5 billion IPO conservatively raises the chances of the shares trading strongly at their debut on Thursday, the sources added. The valuation that Arm has been seeking thus far represents a climb-down from the $64 billion valuation at which SoftBank last month acquired the 25% stake it did not already own in the company from the $100 billion Vision Fund it manages. Sales in China contributed 24.5% of Arm's $2.68 billion revenue in fiscal 2023.
Persons: Dado Ruvic, SoftBank, Echo Wang, Svea Herbst, Bayliss, Greg Roumeliotis, Lisa Shumaker Organizations: REUTERS, SoftBank Group Corp, Reuters, Nvidia Corp, Apple, Nvidia, Devices, Intel, Samsung Electronics, ., stagnate, Sales, Svea, Thomson Locations: New York, China, United States
With retail investors holding individual stocks for less than a year on average, recent history suggests they could lose money, a Reuters analysis shows. Even institutional investors invited to buy into those 10 IPOs before trading would be down an average of 18%. "For almost all retail investors, buying and holding a low-cost index fund is the best strategy." Arm's debut and an upcoming listing from grocery delivery service Instacart are expected to rejuvenate a lackluster IPO market which has slowed over the past two years due to volatility and economic uncertainty. Instacart will be offering some retail investors a chance to buy into its IPO via underwriter fintech company SoFi, its prospectus said.
Persons: Dado Ruvic, Japan's SoftBank Group's, Jay Ritter, Marco Iachini, it's, Ritter, Lance Tupper, Anirban Sen, Echo Wang, Michelle Price, Richard Chang Organizations: REUTERS, Retail, Holdings, Reuters, U.S, Investors, University of Florida, Nvidia, GameStop, Vanda Research, Instacart, IPOs, Thomson Locations: British, New York
A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. Arm is discussing the possibility of raising the price range and seeking a valuation of more than $54.5 billion, in light of the IPO's oversubscription, the sources said. Alternatively, Arm is also considering keeping the price range as is and pricing the IPO above it on Wednesday, which would also lead to a valuation higher than $54.5 billion, the sources added. Arm will not, however, offer more shares, given that SoftBank wants to retain a 90.6% stake in Arm following the approximately $5 billion IPO, as originally planned, the sources said. Sales in China contributed 24.5% of Arm's $2.68 billion revenue in fiscal 2023.
Persons: Dado Ruvic, SoftBank, Echo Wang, Anirban Sen, Greg Roumeliotis, Diane Craft Organizations: REUTERS, SoftBank Group Corp, underwriters, Nvidia Corp, Apple, Nvidia, Devices, Intel, Samsung Electronics, ., stagnate, Sales, Thomson Locations: New York, China, United States
That price range values Arm at $50 billion to $54.5 billion on a fully diluted basis. It remains unclear whether Arm will attract enough investor demand to seek a higher valuation ahead of its IPO pricing on Sept. 13. The sources said Arm will decide early next week whether to raise its IPO price range. Weak mobile demand during a global economic slowdown has caused Arm's revenue to stagnate. Sales in China contributed 24.5% of Arm's $2.68 billion revenue in fiscal 2023.
Persons: Dado Ruvic, Echo Wang, Anirban Sen, Greg Roumeliotis, Richard Chang Organizations: REUTERS, Arm Holdings, SoftBank Group Corp, Financial Times, stagnate, Sales, Thomson Locations: New York, China, United States
Weak mobile demand during a global economic slowdown has caused Arm's revenue to stagnate. The future growth driver is to expand market share in the Windows PC market," said Ryuta Makino, a research analyst at Gabelli Funds. ARM China has a history of late payments and presents "significant risks" to Arm's business, the company's IPO filing said. Arm said in the filing that it was owed $386.9 million by Arm China as of the end of March. Arm's chief financial officer has told investors during the marketing of the IPO that the company was not concerned about being paid back.
Persons: Dado Ruvic, Rene Haas, Ryuta Makino, Arm, Echo Wang, Svea, Bayliss, Max Cherney, Greg Roumeliotis, Richard Chang Organizations: REUTERS, Arm Holdings, stagnate, Vision Fund, Apple Inc, Nvidia Corp, Inc, Apple, Windows, Gabelli, Sales, ARM, Arm, Svea Herbst, Thomson Locations: China, United States, Arm China, ARM China, New York, San Francisco
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