Arm Holdings Is Up 110%, but This Looming Event Could End the Fun
Newly public Arm Holdings (NASDAQ: ARM) stock price soared after the company released a strong earnings report earlier this month. Anticipated increases in demand for ARM's central processing unit (CPU) designs helped the stock explode, and it has more than doubled from its September initial public offering (IPO) price.
ARM's growth potential is legitimate, but the 110% share price action since the IPO that investors are seeing is partly due to the existing IPO lockup -- which could pour water on the stock's momentum when it expires next month.
Investors should fully understand the dynamic between ARM's stock and its fundamentals and how the expiring lockup could soon send shares lower. Here is what you need to know.
Source Fool.com
