KEY - Wall Street Breakfast Podcast: Arm's IPO On Nasdaq

2023-08-22 06:35:13 ET

Summary

• Arm Holdings plans to go public and trade on Nasdaq.
• Tingo Group postpones Q2 results after Hindenburg short report, stock drops 27%.
• S&P downgrades 5 regional US banks due to higher interest rates and asset quality risks.

Listen below or on the go on Apple Podcasts and Spotify Arm ( SFTBY ) files IPO , set to trade on Nasdaq. (00:26) Tingo ( TIO ) postpones Q2 results yet again after Hindenburg short report, stock -27% after hours. (01:26) S&P downgrades 5 regional banks amid higher for longer rates, asset quality risks. (02:13)

This is an abridged transcript of the podcast.

Arm Holdings has filed for an initial public offering…

Arm has said it will trade under the symbol "ARM."

The company generated $2.68B in revenue in fiscal 2023, down from $2.7B in fiscal 2022.

Net income in its most recent fiscal year came in at $524M, down from $549M in the year ago period. It had $2.2B in cash and cash equivalents at the end of fiscal 2023, up from $1.64B in fiscal 2022.

Arm Intel in talks to be anchor investor in chip designer Arm - report spoken to a number of major tech companies about being anchor investors, including Intel (INTC), Alphabet (GOOGL), Apple (AAPL), Microsoft (MSFT), Taiwan Semiconductor (TSM), and Samsung Electronics (OTCPK: SSNLF ) about participating in the IPO.

The company has also spoken to Nvidia ( NVDA ) and Amazon ( AMZN ) about participating in the offering.

Arm was purchased by SoftBank (OTCPK: SFTBY ) in 2016 for $32B.

Tingo Group (NASDAQ: TIO ) is down more than 28% premarket.

On Monday the company further postponed its Q2 results , conference call and its 10-Q filing in the wake of the Hindenburg Research short report.

TIO had initially scheduled the release of the materials on August 10. But after postponing the release they finally postponed it indefinitely.

TIO said in its latest press release , "Although progress has been made with regard to the independent review of the allegations made in the Hindenburg short-seller report, the independent review is still ongoing."

The company did not specify a new reporting date.

The Hindenburg short report was released in early June and alleged financial irregularities in the report.

S&P Global Ratings has downgraded five regional U.S. banks, citing tough operating conditions.

Credit ratings for Comerica (NYSE: CMA ) and Keycorp (NYSE: KEY ) were lowered to 'BBB' from 'BBB+', on account of large deposit outflows and higher for longer rates.

Credit ratings on Valley National Bancorp (NASDAQ: VLY ) and Associated Banc-Corp (NYSE: ASB ) were cut to 'BBB-' from 'BBB', given worsening funding metrics and a higher reliance on brokered deposits. UMB (NASDAQ: UMBF ) was cut to 'BBB+' from 'A-', reflecting weak capital ratios."

The rating changes come two weeks after Moody's downgraded multiple small and mid-sized banks, and placed six larger lenders on review.

Other headlines to look out for on Seeking Alpha:

Zoom Video returns to revenue growth in FQ2, stock rises more than 4% after hours

Los Angeles-area refineries come through hurricane mostly OK - Reuters

FDA approves Pfizer's RSV vaccine as maternal immunization for babies

On our catalyst watch for the day,

• Plug Power ( PLUG ) will hold a Georgia Analyst Day event. Shares of Plug Power have fallen more than 30% over the last six weeks.

• And the Seaport Research 12th Annual Summer Investor Conference will include participation from Entegris (ENTG), Hexcel Corporation (HXL), Minerals Technologies (MTX), Louisiana-Pacific Corporation (LPX), Hawkins (HWKN), VAALCO Energy (EGY), Enviri Corporation (NVRI), and W&T Offshore (WTI). The conference has led to share price jumps from participating companies in the past.

Wall Street's major averages on Monday ended largely higher.

The Nasdaq ( COMP.IND ) gained 1.56%. The S&P 500 (SP500) advanced 0.69% while the Dow ( DJI ) finished 0.11% lower.

Of the 11 S&P sectors, six ended in positive territory, with Tech rising more than 2%. Real Estate and Consumer Staples topped the losers.

Treasury yields were up, the 10-year yield (US10Y) added 9 basis points to 4.34% and topped a new 52-week high. The 2-year yield (US2Y) added 6 basis points to 5.00%.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the green. The Dow is up 0.3%, the S&P 500 is up 0.5% and the Nasdaq is up 0.6%. Crude oil is down 0.2% at less than $80 a barrel. Bitcoin is up 0.4%.

In the world markets, the FTSE 100 is up 0.6% and the DAX is up 1%.

The biggest stock movers for the day premarket: First the biggest gainer. Fabrinet (NYSE: FN ) is up more than 18% after the company outperformed market expectations and its guidance in the Q4 report with a solid Q1 outlook.

And we’ve already discussed the biggest loser, Tingo Group, ticker symbol TIO.

On today’s economic calendar at 730am the Fed’s Thomas Barkin will speak on the economic forecast for 2023 and at 10am existing home sales.

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