Jim Cramer Warns Arm Holdings Stock Is 'Dramatically Overvalued,' Needs To Trade All The Way Down To This Price
Portfolio Pulse from Adam Eckert
Jim Cramer labeled Arm Holdings plc (NASDAQ:ARM) as 'dramatically overvalued' despite its strong quarterly performance, suggesting its stock price should be around $80-$85, far below its current level. Arm's shares had tripled since its IPO before a recent pullback. The stock's surge was attributed to a low-float dynamic due to SoftBank's 90% ownership and possibly high short interest. Arm beat analyst estimates and issued strong guidance, with potential for price increases and new market entries due to AI demand.
February 13, 2024 | 8:18 pm
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Jim Cramer's comments and the recent pullback suggest a potential short-term negative impact on ARM's stock price, especially considering the stock's significant rise post-IPO.
Cramer's influence and the recent pullback indicate a heightened awareness of ARM's valuation, potentially leading to a short-term negative sentiment among investors. The stock's rapid ascent post-IPO and Cramer's valuation estimate of $80-$85, compared to its current price, suggest a possible correction.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100