Arm IPO, valuation won't live up to the hype: Portfolio manager

latest news headlines 2 weeks ago

Chipmaker Arm is seeking a valuation of $52 billion ahead of its IPO launch this month, the largest offering for the IPO market this year. Arm is currently owned by the SoftBank Group (SFTBY, 9984.T). Aptus Capital Advisors Portfolio Manager David Wagner to discuss expectations for the IPO market ahead of Arm's launch and where the company will fit into the tightening tech landscape amid AI trends. "You're going to have to pay basically an arm and leg for valuation coming in here — the thing's going to be traded at 89 times forward earnings, 26 times sale," Wagner says. "Everyone [will] pigeonhole Nvidia as probably the closest competitor, and they trade at about 22 times sales and 32 times earnings so much less than Arm." Subscribe to Yahoo Finance: About Yahoo Finance: At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life. Yahoo Finance Plus: With a subscription to Yahoo Finance Plus get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more. To learn more about Yahoo Finance Plus please visit: Connect with Yahoo Finance: Get the latest news: Find Yahoo Finance on Facebook: Follow Yahoo Finance on Twitter: Follow Yahoo Finance on Instagram: Follow Yahoo Finance Premium on Twitter:
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