Last quarter, ARM Holdings (ARM) benefited from a euphoria for artificial intelligence semiconductor stocks. When it beat expectations, the stock rose from $75 to $130. This time is different. ARM stock will fall by around 9% this morning after posting quarterly results.
ARM earned $0.36 a share (adjusted) as revenue increased by 47% Y/Y to $928 million. It benefited from licensing revenue rising by 60% to $414 million. Royalty revenue topped $514 million (+37%). The firm shipped an impressive 7 billion chips. For fiscal 2025, ARM will earn up to $1.65 a share (adjusted). If shares open at $100, the forward P/E is still a lofty 60.6 times multiple.
Robinhood (HOOD) is due to break out above $20.00. The firm earned $0.18 on a GAAP EPS measure. Revenue grew by 40.1% Y/Y to $618 million. However, this included $254 million in net interest revenue (+22% Y/Y). The company added 810,000 funded customers and now has 23.9 million.
Robinhood grew net deposits by 44% Y/Y annualized to $11.2 billion. Its platform continues to attract customers. Investors may consider Futu Holdings (FUTU) and Charles Schwab (SCHW). Both are appealing investments.
Avoid Chinese tech stocks
The run-up in China tech stocks appears to be over. Nio (NIO) was the 16th most actively traded stock on Wed. It lost 5.26% on the day. Be wary of Xpeng (XPEV) and Li Auto (LI) while BYD (BYDDY) stock is steady. Alibaba (BABA) may re-test the $72-$75 lows. Even in South Korea, Coupang (CPNG) slipped.
