Arm IPO - Tough Situations, Priced To Perfection (Pt.1)
Summary
* Under Softbank control, Arm's fundamentals deteriorated dramatically, it didn't catch the AI tailwind, and its growth prospects were hampered.
* RISC-V will cap growth but the risk is overhyped. Arm's position in the core mobile market and growing PC/server market is still solid.
* At ~ 20x EV/S without clear traction to either grow the topline, or improve operating efficiency, Arm is clearly not a buy.
* If Arm is able to improve operating efficiency while driving more organic gr