Arm shares face selling pressure test as release period approaches
Arm's share price has doubled since its IPO。And as the lifting date approaches, company insiders face the temptation to sell their shares, and Arm's share price is at risk of selling pressure。
As demand for AI computing surges, Arm Holdings Plc (ticker: ARM) shares have doubled since the IPO。And as the lifting date approaches, company insiders face the temptation to sell their shares。
Typically, most public offerings are accompanied by a six-month release period that restricts insiders from selling their holdings, and this release has raised concerns in the market。
As Arm's major shareholder, SoftBank Group holds more than 90% of the shares and its actions will have a significant impact on the share price.。Although SoftBank's share price rose nearly 30 percent after Arm's listing, SoftBank chose to remain silent about its plans to deal with its Arm stake, only emphasizing the importance of Arm in the group。
Before the lifting of the ban, Arm's share price fluctuated, falling by 4 at one point..2%, but then rebounded quickly, showing market uncertainty about the impact of the lifting of the ban.。Analysts have different views on share price movements after the lifting of the ban, with some optimistic about Arm's long-term prospects, while others are concerned about possible selling pressure after the lifting of the ban.。
In addition to SoftBank, Arm customers, including Nvidia, Supermicro and Google, also hold stakes in Arm, and TSMC publicly sold some of its holdings shortly after Arm's earnings announcement, highlighting the market's high level of concern.。
Meanwhile, Oracle (ticker: ORCL) is expected to see its biggest gain since December 2021 due to a surge in orders for its cloud computing business, with strong market momentum in certain areas of the technology industry even as the release period approaches。
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