From Nasdaq: 2024-08-06 05:10:00

Arm Holdings (NASDAQ: ARM) stock took a hit despite beating estimates, with shares falling 15.7% due to weaker guidance. Revenue is expected to decline to $780-830 million with EPS of $0.23-0.27.

Arm’s strong growth in license revenue, up 72% to $472 million, signals a promising future for royalty revenue. With new cloud opportunities and higher royalty rates from new technology, Arm is well-positioned for growth.

Investors should consider Arm Holdings’ potential in the AI market and long-term growth prospects while being cautious of the current high valuation and near-term market pressures. It may be wise to adopt a dollar-cost-averaging approach for investing in the company.

For those considering investing in Arm Holdings, it’s important to weigh the potential benefits against other top stock picks. The Motley Fool’s Stock Advisor service offers insights and recommendations for building a successful portfolio.



Read more at Nasdaq: Arm Stock Plunges. Is This a Buying Opportunity or a Warning Sign?