Arm Holdings Draws Investor Interest As Stock Continues To Hover Near 200-DMA After 4 Consecutive Sessions Of Decline
- ARM stock up 0.5% in premarket trade on Monday after four successive sessions of declines. Arm's shares have witnessed significant resistance near the $183 mark this year – a level they have nudged but failed to surpass twice this year. Arm reported revenue of $1.14 billion in Q2, beating the estimated $1.06 billion, according to Stocktwits data.
After four consecutive sessions of declines, Arm Holdings (ARM) stock is trading near its 200-day moving average (200-DMA) for the first time in two months. The stock traded 0.5% higher in Monday's pre-market.
In the recent pullback, the stock shed nearly 10% and is currently trading near the $140 mark. Notably, Arm's shares have witnessed significant resistance near the $183 mark this year – a level they have nudged but failed to surpass twice this year. With the stock hovering near its 200-DMA, investors will be eyeing the upcoming sessions for developing trends.
Q2 Results
The chipmaker has been on a downtrend lately, despite posting a better-than-expected second-quarter (Q2) print.
Arm reported revenue of $1.14 billion in Q2, beating the estimated $1.06 billion, according to Stocktwits data. Its royalty revenue climbed 21% to $620 million, driven by higher royalty rates per chip, while its license and other revenue surged 56% to $515 million.
On a non-GAAP basis, the company expects third-quarter revenue of about $1.225 billion (+/- $50 million). Operating expenses are estimated at around $720 million, and an earnings per share (EPS) of $0.41 (+/- $0.04).
How Did Stocktwits Users React?
Retail sentiment on Stocktwits remained in the 'bearish' territory for the past 24 hours. The stock has a short interest of 1.4%, according to Koyfin data.
Tech stocks, in general, have been on a decline despite positive quarterly results and an optimistic outlook. Investors have been sceptical about valuation and the sustainability of growth driven by artificial intelligence.
Arm's stock has gained over 11% year-to-date.
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