Arm Holdings plc (NASDAQ:ARM) shares tripled from the initial public offering (IPO) price following last week's earnings results before pulling back a bit on Tuesday.
Jim Cramer acknowledged that it was a fantastic quarter for the Cambridge, England-based firm, but he argued that the move higher was excessive.
“Arm Holdings, when it was at $160 yesterday, was not a natural thing. That was just the market mechanics breaking down,” Cramer said Tuesday on CNBC’s “Squawk On The Street.”
SoftBank acquired Arm in 2016 for $32 billion and took the company public last year in what was the biggest IPO of 2023. Softbank still owns approximately 90% of the chip designer's outstanding shares, which has created a low-float dynamic in the stock. Cramer suggested that high short ...