ARM Falls 9%
Arm Holdings stock falls 9% as investors sell high-growth semiconductor stocks during a broader technology pullback
Arm Holdings plc (NASDAQ: ARM ) stock fell more than 9% on Tuesday as investors sold high-growth semiconductor stocks during a broader technology pullback. 04%, prompting traders to lock in gains after ARM’s strong 12-month rally. Macro Pressure Weighs on Growth Stocks Tuesday’s decline appeared to be driven by broader market sentiment rather than company-specific news. 84%.
Despite the weakness in technology stocks, market breadth remained positive. 8-to-1, and seven of the 11 S&P 500 sectors traded higher. That suggests selling was concentrated in high-valuation technology names rather than the broader market. Technical Picture Remains Bullish Even after Tuesday’s selloff, ARM continues to trade well above its key long-term moving averages.
21. The stock’s golden cross, formed in April when the 50-day moving average moved above the 200-day moving average, remains intact. However, the sharp rally to a 52-week high in June has left the stock vulnerable to profit-taking. 77.
A break below that level could lead to a deeper pullback toward intermediate support. The moving average convergence divergence indicator remains above its signal line with a positive histogram. That suggests momentum continues to improve even as the stock experiences short-term volatility. 50.
Earnings and Analyst Outlook ARM is expected to report quarterly results on July 29. Analysts expect earnings of 36 cents per share, up from 35 cents a year earlier. 05 billion. The stock trades at about 480 times earnings, reflecting its premium valuation.
15. On Tuesday, Bank of America maintained its Neutral rating and raised its price forecast to $460. New Street Research downgraded the stock to Neutral on June 18, while Bank of America previously raised its price forecast to $335 on June 11. ETF Exposure ARM is a significant holding in several exchange-traded funds, including the REX AI Equity Premium Income ETF (NASDAQ: AIPI ), the VanEck Fabless Semiconductor ETF (NASDAQ: SMHX ), and the First Trust International Equity Opportunities ETF (NASDAQ: FPXI ).
As a result, fund inflows and outflows can influence trading activity in the stock. 25 at the time of publication on Tuesday, Photo via Shutterstock