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CDSL | Flagpole | NSDL Files for IPO • NSDL has filed its DHRP, leading to market concerns that investors might shift their funds to NSDL, potentially affecting CDSL. (We'll be sharing a detailed comparison for NSDL and CDSL in the comments section below. Feel free to follow us for the updates.) Now CDSL: • In the last 13 months, it's formed a beautiful Flag Pole pattern. The breakout of which is already done. • The 1000 level + 50% Fibo level provided support during its momentum. • Volumes increased during the rally, which is a positive sign. • It faces a crucial resistance zone the break and sustenance of which will be necessary. • Now if you are worried about the funds flowing to NSDL, Remember what happened to BSE when NSE announced its IPO – it literally doubled in value. NSDL's valuation will play a crucial role in boosting CDSL's momentum. • Duopolies, like Ola and Uber, Airtel and Jio, Swiggy and Zomato, Amazon and Flipkart, tend to fare well. CDSL and NSDL too can coexist. • Do you know who else can and must Coexist? YOU and WE! Follow us for such interesting Case studies. Have Insights or Questions? Let us know in the comments below.👇 While you do that, how about a boost for some motivation 🚀 ⚠️Disclaimer: We are not registered advisors. The views expressed here are merely personal opinions. Irrespective of the language used, Nothing mentioned here should be considered as advice or recommendation. Please consult with your financial advisors before making any investment decisions. Like everybody else, we too can be wrong at times ✌🏻
NSE:CDSL
by TheChartereds
3
XCH on Risk but with Potential?The old "Maybe Bottom" did not hold on the news that Chia Network Inc will sell 200k XCH worth ~ 5 Million USD from the prefarm. The questions are: - How many prefarm XCH will get sold the next years and how often? This risk now is clear visible. - How is the financial situation that selling part of the prefarm was worth the lost in trust? - How far in the future is the IPO? - How is the situation about potential B2B customers and partners? In case it isn't that bad the XCH downtrend could turn around. More bad news on the other hand could create a massive loss in value. In my opinion the risk is very high, higher than before. I am not sure if that is realy reflected in the price, so the new "maybe bottom" is weak. XCH trend was always off the general crypto market even that the trend influences the XCH trend. XCH and Chia Network as a brand is also not worth much currently. Outside of the Chia space it is unrecognised, forgotten or viewed as a scam. But this is not necessarily a bad thing at this point.
by Just4FunTrader
IPO Investing: Bad or Very Bad ?IPOs can be enticing opportunities for investors to jump into potentially high-growth companies from their early stages. While IPOs can offer significant returns, a strategy of investing in every IPO that hits the market is not considered prudent. Let us explore several key reasons why such an approach is unwise for investors. Lack of Information: IPOs often lack comprehensive financial history and operating data. As a result, investors have limited insights into the company's performance, growth prospects, and competitive positioning. Investing without adequate information increases the risk of making uninformed decisions and exposes investors to potentially unprofitable ventures. Limited Track Record: Since many IPOs are relatively young companies, they often lack a substantial track record in navigating economic downturns or industry-specific challenges. Assessing their long-term sustainability is just impossible. High Valuations: IPOs tend to be priced at a premium to attract investor interest. Especially, When innovative companies go public, It becomes difficult to value such companies owing to the absence of any market comparable. The result is higher valuations. An epic example is NSE:PAYTM . Also, If you boost this post, It would help us to reach many like-minded investors like you. Uncertain Performance: When valuations are high, so are the expectations. Newly listed companies face challenges in meeting the high expectations set by the market. While some perform exceptionally well, others struggle to deliver. This brings panic. Diversification Concerns: Investing in every IPO can create an imbalanced portfolio. The preset proportions may go haywire. Especially, when investors are forced to become long-term investors in a company due to a substantial decline in the stock price post listing. Conclusion: While IPOs may offer the allure of early-stage growth and potential windfall gains, investing in every IPO is not a wise strategy for investors. The lack of information, market volatility, high valuations, uncertain performance, and limited track record are among the key concerns. Instead, investors should approach IPOs cautiously, conduct thorough research, and focus on building a diversified portfolio that aligns with their risk tolerance and long-term investment goals. Have Insights or Questions? Let us know in the comments below.👇 ⚠️Disclaimer: We are not registered advisors. The views expressed here are merely personal opinions. Irrespective of the language used, Nothing mentioned here should be considered as advice or recommendation. Please consult with your financial advisors before making any investment decisions. Like everybody else, we too can be wrong at times ✌🏻
NSE:NYKAAEducation
by TheChartereds
6
TBO TEK LTD - Pre and Post IPO Statistics IPO Price: 920 Issue Size: 1150 Crore ( 1.68 crore shares) Lot Size: 16 Listed: 1426 ( Premium listing - 55% gain :) ) Closing on Listing Date: Closed in Negative @ 1406 minor loss of 1.4%) Listing Day Candle: long Range Spinning Candle Listing Day Volume: 1.2 crore Listing day open and low PRICE would act as a support in immediate future. Support Range: 1426 -1275 ( 10.5%) TBO tek is one of the leading global travel distribution platforms and simplify the business of travel for Suppliers such as Hotels, Airlines, Cruise, Car rentals, Transfers, and Rail and Retail & API Buyers such as Travel agencies, independent travel advisors; and enterprise buyers that include tour operators, travel management companies, online travel companies, super-apps and loyalty apps on its platform that enables them to transact seamlessly with each other. TBO Tek platform connects over 159,000 Buyers with over 1 million Suppliers across 100+ countries
NSE:TBOTEK
by manuagarwal21
Reddit Braves Wall Street with 48% Pop in Debut. When Growth?Traders upvoted Reddit’s IPO but can the buzzing social media platform earn its stripes as a public company now? Table of Contents: ⦿ Reddit Surges in Public Market Kickoff ⦿ If Wall Street Bought, Should You? ⦿ Reddit Stacked Up Against Rivals ⦿ Ad Posts Looking Like User Posts? ⦿ Bottom Line 📍 Reddit Surges in Public Market Kickoff Reddit (ticker: RDDT ) stepped into the public-market space this week with a flashy and splashy IPO (initial public offering) in New York that chalked up a 48% gain on its debut day. The listing was met with lots of cheer from Wall Street as it was the biggest one for a social media company since Pinterest hit exchanges in 2019. Shares of Reddit surged to $47 out of the gate to make its first deals at a 38% premium to the company’s IPO price of $34 a share. Valuation soared to $9.5 billion by the end of the session when shares closed at just over $50 a pop. Reddit’s listing day with the Snoo—the website’s official mascot. Source: Reddit. By the looks of it, investors upvoted Reddit—a chat-room powerhouse and a stalwart of community-based culture venues sprawling from cat-praising r/CatsInSinks and owl-loving r/Superbowl to the intimidating trading hub r/wallstreetbets that bankrupted GameStop short-seller Melvin Capital. 📍 If Wall Street Bought, Should You? So the question is, if Wall Street scooped up Reddit shares… should you? Let’s take a behind-the-curtain look at Reddit’s business model. It’s been three years of trying for Reddit to get listed on the New York Stock Exchange. Finally, it issued 22 million shares for flotation, of which 8%—or 1.8 million—were reserved for friends, family and volunteer moderators. Those are unpaid users who make sure all the online communities are running smoothly. And they are also the content creators, because—unlike Netflix (ticker: NFLX ) or Spotify (ticker: SPOT )—Reddit doesn’t pay for its content. The platform boasts roughly 73 million daily active users spread across 100,000 online chat rooms, or “subreddits.” Despite the wide reach and 19 years of existence, the platform has never seen what a profitable year looks like. Its revenue comes predominantly from selling ads to companies who paid $804 million last year while the bottom line arrived at a $91 million loss. The revenue figure was a 20% increase from the $668 million picked up in 2022. 📍 Reddit Stacked Up Against Rivals And while revenue growth can be seen along the years, investors are betting that Reddit will ultimately catch up to the big shots in the social-media space. When Meta (ticker: META ), formerly Facebook, kicked off its public endeavors in 2012, it soaked up a market value of $104 billion and raised $ $16 billion for its IPO. Elon Musk’s X Corp, formerly Twitter, landed its first public deals at a $14 billion valuation, having raised $1.8 billion. In comparison, Reddit raised $748 million at an IPO valuation of $6.4 billion. Reddit carries the lowest valuation at IPO among social media peers. 📍 Ad Posts Looking Like User Posts? Against that backdrop, Reddit is taking a sketchy approach to bolstering its ad sales. Apparently, the folks at the upper echelons of the company decided it’s a good idea to make ad posts look exactly like user posts . The so-called “free form ads”, the company said, will mimic the popular user post type “megathread” and will “encourage users to deep dive into the topic at hand.” The community, on the other hand, didn’t show much love to that new advertising strategy. “Enable comments on ads, you cowards,” said one Reddit user while related threads were loaded with users’ comments of disapproval. 📍 Bottom Line And there you have it, 19 years of posts, 100,000 subreddits, and 73 million users who churn out all the content and self-sustain operations. Reddit gave us the meme stock craze back in 2021. Is it going to give us a rerun of the stock frenzy with its own shares this time? Or will the folks at r/wallstreetbets flip the script and short it? 💬 Let us know your thoughts in the comment section below! Don't want to miss any of our articles and be notified when a new one is released? Give us a follow!
Editors' picks
NYSE:RDDT
by TradingView
9
75: Reddit A Game-Changer in the Social Media Market?As Reddit prepares for its highly anticipated initial public offering (IPO), investors are buzzing with excitement. With Meta (formerly Facebook) currently dominating the social media sector, Reddit's entry promises to shake up the landscape. Market Potential: Reddit's unique community-driven platform has garnered a massive following, making it a potential powerhouse in the social media realm. Its upcoming IPO signals confidence in its growth prospects and market potential. Competition: While Meta remains the industry leader, Reddit's IPO could introduce healthy competition, driving innovation and benefiting users and investors alike. Investment Consideration: As Reddit gears up for its IPO, investors are weighing the opportunity to participate in this dynamic market. With Meta's established dominance, Reddit presents an intriguing alternative for portfolio diversification and potential returns. With Reddit's IPO on the horizon, the social media market is poised for disruption. Investors should closely monitor developments and consider Reddit's potential impact on the sector. Could Reddit emerge as a formidable competitor to Meta? Only time will tell.
NASDAQ:META
by Soldi75
BLOCKBUSTER Listed Hike Of 181.50 %Vibhor Steel Tubes IPO GMP or grey market premium is +140. Its similar to previous three sessions, risen sharply from Friday's +120. This indicates Vibhor Steel Tubes share price were trading at a premium of ₹140 in the grey market, according to investorgain.com. Considering the upper end of the IPO price band and the current premium in the grey market, Vibhor Steel Tubes IPO expected listing price was ₹291 apiece, which is 92.72% higher than the IPO price of ₹151. Based on last 14 sessions grey market activities, today IPO GMP points upwards and expects a strong listing. The lowest GMP is ₹110, while the highest GMP is ₹140, as per investorgain.com analysts. 'Grey market premium' indicates investors' readiness to pay more than the issue price.
BSE:VSTLLong
by Abhishekingx
(MGX)Metagenomi, Inc.: A Genetic Medicine Powerhouse on the RiseNASDAQ:MGX here's an analysis of Metagenomi, Inc.: Chart Data is limited.. Financial Performance: Market Cap: $456.337 million Previous Close: $12.25 52 Week Range: $9.74 - $12.74 Volume: 392,654 Avg. Volume: 1,187,350 Recent News: Introduction: In the dynamic realm of genetic medicine, where breakthroughs hold the promise of revolutionizing healthcare, one company stands out for its pioneering efforts and recent market buzz – Metagenomi, Inc. With a low share price and a scorching-hot market for gene research, investors are eyeing Metagenomi with keen interest. Let's delve into the company's profile, recent developments, and the compelling reasons why it might just be the next big investment opportunity. Company Overview: Metagenomi, Inc., headquartered in Emeryville, California, emerges as a leading player in the gene editing biotechnology sphere. Established in 2016, Metagenomi is dedicated to developing therapeutics using its proprietary metagenomics-derived genome editing toolbox. This arsenal comprises programmable nucleases, base editors, and RNA/DNA-mediated integration systems, positioning the company at the forefront of genetic medicine innovation. Recent IPO and Insider Trading: A recent initial public offering (IPO) catapulted Metagenomi into the spotlight, with 6,250,000 shares of common stock issued at a public offering price of $15.00 per share. Additionally, insider trading activity has surged, with Novo Holdings A/S, a notable insider, acquiring a significant stake of 900,000 shares at a price of $14.47 per share. This insider confidence underscores Metagenomi's potential and serves as a bullish indicator for prospective investors. Financial Performance and Market Positioning: Despite its relatively modest market capitalization of $456.337 million, Metagenomi boasts a compelling growth trajectory. Recent financial data indicates a positive momentum, with total revenue reaching $37.952 million, signaling robust demand for the company's innovative genetic therapies. Furthermore, the company's strategic collaborations with industry giants like ModernaTX, Inc. and Ionis Pharmaceuticals, Inc. underscore its market credibility and growth potential. Gene Research Revolution: Metagenomi's strategic focus on precision genetic medicines aligns perfectly with the burgeoning gene research revolution. As the healthcare landscape increasingly gravitates towards personalized therapies and gene editing technologies, Metagenomi stands poised to capitalize on this paradigm shift. The convergence of cutting-edge science, favorable regulatory tailwinds, and heightened investor interest in genetic medicine positions Metagenomi as a prime beneficiary of the gene research boom. Investment Considerations: While Metagenomi's low share price and the red-hot gene research market present compelling investment opportunities, prudent investors must weigh certain considerations. The biotechnology sector inherently entails high risk and volatility, with clinical trial outcomes, regulatory approvals, and competitive dynamics exerting significant influence on stock performance. Additionally, Metagenomi's status as an early-stage company necessitates a long-term investment horizon and a tolerance for market fluctuations. Conclusion: In conclusion, Metagenomi, Inc. emerges as a compelling investment opportunity in the genetic medicine landscape. With a low share price, recent IPO buzz, and a strategic foothold in the gene research revolution, Metagenomi embodies the quintessential blend of innovation, potential, and market positioning. While investors must exercise due diligence and navigate the inherent risks of the biotechnology sector, Metagenomi's transformative vision and burgeoning market opportunities make it a stock worth watching and potentially adding to one's investment portfolio.
NASDAQ:AMDLong
by OnePunchSolutions
1
Datasea Inc. Shows Remarkable Growth in Q2 Fiscal Year 2024 Datasea Inc., ( NASDAQ:DTSS ) a leading global technology company specializing in intelligent acoustics and 5G multimodal communication, has reported stellar financial results for the second quarter ended December 31, 2023. The company's impressive performance underscores its strategic focus on innovation, market expansion, and customer-centric approach. In the second quarter of fiscal year 2024, Datasea ( NASDAQ:DTSS ) recorded a substantial revenue of approximately $11.3 million, marking a remarkable surge compared to $0.1 million in the corresponding period last year. This phenomenal growth can be attributed to the robust expansion of its 5G multimodal communication business in China, where the company secured significant service agreements. Datasea's CEO, Zhixin Liu, emphasized the pivotal role played by the sales team in promoting products tailored to meet customer needs while continuously enhancing product quality and services. The company's revenue for the first half of fiscal year 2024 soared to $18.2 million, compared to a mere $131,459 in the same period of the previous year, reflecting a staggering increase of 13,766.8%. This exponential growth underscores Datasea's leadership in the research and development of 5G multimodal communication technology. The sustained expansion of its customer base, coupled with proactive market promotion and exceptional customer support, has solidified its market positioning. Datasea's ( NASDAQ:DTSS ) proactive measures to streamline administrative expenses have yielded positive results, with a 24.8% reduction in administrative costs compared to the same period last year. The company's prudent approach to managing accounts receivable, including strengthening credit evaluation processes and optimizing collection procedures, has led to a significant decrease in outstanding balances. The company's operations update highlights its strategic initiatives aimed at leveraging acoustic intelligence and expanding its international footprint. Datasea's ( NASDAQ:DTSS ) intelligent acoustics products segment, driven by cutting-edge technology, addresses real-world challenges across various industries. The successful launch of air sterilization products in China and the ongoing development of new offerings underscore the company's commitment to providing innovative solutions for healthy living environments globally. Datasea's ( NASDAQ:DTSS ) foray into the US market through its subsidiary, Datasea ( NASDAQ:DTSS ) Acoustics LLC, signifies a significant milestone in its expansion strategy. Collaborations with renowned research institutions and the pursuit of US patents underscore the company's commitment to technological innovation and intellectual property protection. In the realm of 5G multimodal communication, Datasea ( NASDAQ:DTSS ) continues to pioneer advancements, offering a comprehensive product portfolio with high brand recognition. Strategic partnerships and agreements with key clients further reinforce the company's position as a market leader in this domain. Looking ahead, Datasea ( NASDAQ:DTSS ) remains poised for sustained growth, driven by its relentless pursuit of technological excellence, market expansion initiatives, and strategic collaborations. With a solid foundation and a clear vision for the future, Datasea ( NASDAQ:DTSS ) is well-positioned to capitalize on emerging opportunities and deliver long-term value to its stakeholders. In conclusion, Datasea's ( NASDAQ:DTSS ) remarkable financial performance and strategic initiatives underscore its position as a trailblazer in the technology landscape, poised for continued success in the dynamic global market.
NASDAQ:DTSSLong
by DEXWireNews
i thought id be happy with $20 XRP, im adding another 0fib channels, cyclic lines plus fibonacci circles - who would of thought about this powerful combo. alot is pointing towards a massive xrp movement soon: - corrective fib circle - fib channel support - cyclic timeline balance ...its positioned for 2024 to moon like i said i thought $20 would be a nice pump, if retail jumps in with the same vengeance as 2017 then this could absolutely rocket into triple digits. expansion from a 6 year consolidation will absolutely melt faces
BITSTAMP:XRPUSDLong
by TBTS
20
SVRE: Restoring Balance Despite Market Volatility Despite a slew of safety improvements added to vehicles in the U.S. over the past 20 years – like forward collision warnings, emergency braking, lane departure warnings, blind spot detection, backup cameras, etc., nearly 43,000 people died in traffic accidents in 2022 in the U.S., up 30% from 2013.2 Experts agree that there is not one simple explanation for this apparent contradiction where we are driving safer vehicles and yet, traffic fatalities continue to climb. Some of the increase is simply driven by math, because while the U.S. population has grown by 5.4% over the past decade the number of registered vehicles in the U.S. has grown by over 16.8% during the same period. However, there has also been a notable increase in what the NHTSA calls “dangerous driving behaviors” – speeding, impaired driving, and failure to wear a seatbelt – which are pushing traffic fatalities up in the U.S. Enter the SaverOne Solution While protecting everyone on the roads from the dangers of distracted driving is an admirable goal, until legislation completely bars access to technology in our vehicles the reality is that economics will drive adoption of tools to prevent distracted driving. In the case of commercial fleets, think bus companies, trucking and delivery companies, the risk of litigation from a single distracted driver incident is so great, that these companies are looking for alternative solutions to eliminate a driver’s access to distracting phone apps. Again, while this technology largely exists in most phones, it requires the driver to actively opt-in, and in the case of commercial vehicles looking to mitigate liability risk, they want to remove the opt-in requirement and instead have a system that automatically limits a driver’s phone to only essential tools to prevent driver distraction. SaverOne (NASDAQ:SVRE) has built its first commercial product to address just this need by detecting and locating a driver’s cell phone radiofrequency (RF) signal. The company’s first commercial product - an In-Cabin Driver Distraction Prevention Solution (DDPS) branded as the SaverOne system, can identify if a cell phone is in the vicinity of the driver’s seat and with the SaverOne App installed it will block access to the most distracting apps (social media/texting) while still allowing necessary apps like navigation and the ability to make hands-free phone calls. SaverOne is initially deploying this solution for the commercial market so companies operating commercial vehicles, buses, or vehicles provided to employees can mitigate their liability associated with distracted driving. The company launched this product in 2019 in Israel with several pilot programs and as of August 2023 about 4,300 systems have been ordered and roughly 3,000 of these systems have been installed. The company released a second generation of the distracted driver protection solution in the fourth quarter of 2022, which will target the larger global auto market and in 2023 the company announced its first international sales. We believe that the company is still identifying the best distribution, installation, and marketing strategies for global markets. Recent financial results and news: In the first half of 2023, the company reported a sharp jump in year-over-year revenues to roughly $400k as the number of installed systems grew to 3,000 as of August 29, 2023 (up from 1,750 installed units as of 3/31/23). While this growth rate is impressive it is important to note that SaverOne is still a fairly small company and managing its growth as the company moves from initial pilot installations to full fleet installations will be a challenge. The company’s first-half operating loss of $4.8 million was due in large part to the $3.3 million R&D expenditure. The company has indicated that as it develops its OEM solution and VRU product R&D expenditures will likely remain elevated. Other Notable Milestone: - The company announced that Electra Afikim (a large public transportation company in Israel) would install the SaverOne System in its entire bus fleet representing roughly 1,200 vehicles, SaverOne’s largest order to-date. - The company announced a meaningful expansion of its pilot projects outside of Israel with an additional pilot project on buses in the Gulf region; a second pilot project in the U.S.; and its first pilot in Europe. - In 2022, the company entered into a memorandum of understanding with IVECO (one of the leading medium/heavy truck manufacturers in the world) to integrate its solution within IVECO trucks. This has the potential to be a game-changing agreement for the company based on IVECO’s size (producing over 150,000 vehicles annually). IPO/Financing: A little over a year ago, in June 2022, the company closed on its initial public offering of 2.94 million units (consisting of an ADS and one warrant to purchase an ADS) at a price of $4.13 per unit raising roughly $13 million in gross proceeds. Each ADS represents 5 shares of common stock. In December 2022, the company completed a private placement of 0.8 million ADSs at $1.854 per ADS raising roughly $1.5 million in gross proceeds. Closing Notes SaverOne (NASDAQ:SVRE) is an emerging company addressing the challenging issue of cell phone device use inside a moving vehicle. Distracted driving continues to get worse around the globe despite numerous public awareness campaigns. Corporate fleets and commercial transportation companies need tools to limit distracted driving that operate seamlessly without requiring a driver to opt-in and that is the solution that SaverOne has brought to the market. The opportunities in front of SaverOne as they expand into fleets, push into international markets, launch an OEM solution for car makers, and build a tool to protect Vulnerable Road Users will have to be weighed by investors against the dilution risk related to any pending financing. There is no doubt that distracted driving remains a huge problem around the globe, but absent significant legislative action (the EU has recently enacted some distracted driving measures to be rollout over the next few years), the current half-hearted approach to the problem (relying on driver compliance) is likely going to be the default in most markets. As more advanced features are built into new vehicles, it is likely that adoption rates of Driver Distraction Prevention Solutions like those offered by SaverOne with grow. SaverOne is an early-stage market entrant but if you are watching for next-generation safety solutions in the transportation market then you should have it on your radar.
SLong
by DEXWireNews
1
Collective Audience, Inc. (NASDAQ:CAUD) Concludes IPOCollective Audience, Inc. (NASDAQ:CAUD), a leading provider of digital consumer acquisition solutions, announced its common stock has commenced trading today on the Nasdaq Global Market under the new ticker symbol - CAUD. The commencement of trading on Nasdaq follows the completion of the business combination involving DLQ, Inc., a former subsidiary of Logiq, Inc (OTCQX: LGIQ) and with Abri SPAC I, Inc. (previously traded on Nasdaq as ASPA, ASPAW, ASPAU), a special purpose acquisition company, which Abri announced yesterday. The newly combined company was renamed Collective Audience, Inc. to reflect its innovative performance marketing platform which has been designed to identify, convert and monetize the collective audience of leading brands and publishers. About Collective Audience Collective Audience is a U.S.-based provider of e-commerce and digital customer acquisition solutions that simplifies digital advertising. It provides data-driven, end-to-end marketing through its results solutions or access to data for activating campaigns across multiple channels. The company’s digital marketing business includes a holistic, self-serve AdTech platform, a proprietary data-driven, AI-powered system that enables brands and agencies to advertise across thousands of the world’s leading digital media and connected TV platforms.
CLong
by DEXWireNews
Patent Expirations And Competition May Limit ARM’s Market ShareKey points 1. ARM is a leader with a saturated number of customers limiting future growth. It’s in a highly competitive landscape and needs to innovate beyond patent expirations in the 2030s. 2. As a controlled entity of SoftBank, I expect the board to push for buybacks in a bid to maximize returns. 3. I expect SoftBank to slowly unload its stake, while ARM buys back their stock - this may initially sustain the price. Prospects Are Still Solid After IPO ARM designs and licenses processors to manufacturers, it is the engineering company behind the world’s CPUs. About 70% of the world’s population uses Arm-based products. More than 30 billion ARM-based chips (smartphones, small electronics, data centers, networking equipment) were shipped in FY '23, representing an approximately 70% increase since 2016. Most of ARM’s IP sales are in the United States, however a good combined portion are in East Asia, including China (PRC), Taiwan and South Korea. The business model of the company is to design ARM-chips and license them out to manufacturers. It sells the intellectual property behind chips, but doesn’t produce the hardware. This is an engineering-first company, with approximately 80% of global employees focused on research, design, and innovation. The company reaches scale with the ability to license out each CPU product to multiple companies. ARM is a high performing company, with a gross margin of 80% and operating margins of 25%. The company made $2.7 billion in revenues in 2022 that stagnated in the IPO year. Despite stagnating in its IPO year, it’s future prospects from here are still solid as demand for their IP continue to grow. But I don’t believe it’ll grow revenues as fast as analysts are expecting (14% per year). ARM’s Market Share May Suffer As Patents Expire Arm has an addressable market of $202.5 billion, and expects it to grow at a 6.8% annual rate to $246.6 billion by the end of 2025. The company estimates the aggregate value of chips containing Arm technology to be approx. $98.9 billion in 2022, representing 48.9% market share. This market share is large even for a market leader. Competitors and expiring patents can become significant forces driving down the market share for ARM in the future. Notably most of the key ARM patents are expected to expire in the 2030s: The expiration of these patents can open the door for more companies to design and manufacture ARM-based chips. Limited New Customer Growth, But Opportunities in Smart Devices More than 260 companies reported that they had shipped Arm-based chips in 2023, including: Mobile computing: Apple, Guangdong OPPO, Samsung, Vivo Mobile, Xiaomi. Cloud computing: AWS and Alibaba Industrial IoT: Cruise and Mercedes-Benz, Raspberry Pi, Schneider Electric, and Siemens. ARM also entered into a long-term agreement with Apple that extends beyond 2040 allowing the company to use Arm architecture for their CPUs. The customer base for ARM is well established, and the company is at a phase where it will have a harder time acquiring new customers, rather it will have to rely on industry growth and innovation in order to increase revenue. One of the highest-potential growth avenues for ARM is the smart devices vertical. ARM’s CPU architecture fits well in small devices, giving it an advantage over peers with larger CPUs. As compute power increases, it will become more practical for consumers to rely on mobile devices and wearables instead of larger devices for everyday needs, this has the potential to widen the TAM. Another growth avenue for the company is the market adoption of electronically rich vehicles and EVs as well as the capitalizing on government programs subsidizing EVs. Vehicles have an increasing number of processing demands both in central systems, and IoT linked sensors. Selling Pressure From SoftBank May Limit Price Appreciation ARM is a controlled entity owned by SoftBank Group with approximately 90.6% of their outstanding ordinary shares following the completion ARMs IPO. Arm’s Top Shareholders ARM’s IPO is pushed by SoftBank who is looking to cash-in on their investment or escape with minimal losses. One scenario is to expect a continuous selling from SoftBank, which means that there may be selling pressure for some time keeping price appreciation moderate until the stock flips to a diversified investor base.
NASDAQ:ARMLong
by DEXWireNews
SN LongBought half size this afternoon as SN cleared a recent consolidation pivot after gapping up this morning. In a better environment, I'd have bought in full size today, but I'll look to hold and buy more if / when the stock reaches its debut-day high of $52.90 and the environment improves. Reasons for entry are simple... stock gapped up on earnings, pulled in and then gapped away again on even higher volume than the earnings day. It has continued to show solid volume patterns with volume surges accompanying big up days (including today) & had a nice volume dry-up leading into today's gap and push. Stop is just below where a complete gap fill would occur. Will be looking to slide the stop up as soon as I can given the poor environment. Would like to see a big volume up day bring us back to the debut-day high to drag that anchored VWAP from the 9/11/23 gap up above my breakeven price.
NYSE:SNLong
by apaqu