From Nasdaq:

Shares of Arm Holdings plc tripled from the IPO price last week before pulling back on Tuesday. Jim Cramer believes the move higher was excessive, with SoftBank still owning 90% of the outstanding shares, creating a low-float dynamic in the stock. Arm beat analyst estimates, but Cramer thinks the stock is radically overvalued.

Arm went public at $51 per share, but the stock is now trading around $80 or $85 per share, causing similarities to the dot-com bubble. Cramer emphasized that it was a “shame” to see because fundamentally, the quarter was terrific. Arm’s 180-day post-IPO lockup is set to expire on March 12.

Despite Tuesday’s losses, Arm Holdings shares were down 18.7% at $120.97 at the time of publication. The stock is still up approximately 125% over the last three months.



Read more: Jim Cramer Warns Arm Holdings Stock Is ‘Dramatically Overvalued,’ Needs To Trade All The Way Down To This Price