Arm Holdings opened up 42% on Monday on the announcement that it is to be acquired by the Japanese tech/telecoms company SoftBank (SFTBY - Free Report) .
Based in Cambridge, UK, ARM designs microprocessors, physical intellectual property, and related technology and software. Notably, the company makes designs that are used by Apple (AAPL - Free Report) and Samsung, amongst others.
SoftBank agreed to pay £24.3 billion ($32.1 billion) for ARM, which had a market cap of $22 billion before the deal. Softbank plans on “preserving the ARM organization, including ARM’s existing senior management team, brand, partnership-based business model and culture” as per their official announcement.
SoftBank has been eyeing ARM for some time now, but a post-Brexit pound that is down 12% against the Japanese Yen may have served as a catalyst, although SoftBank claims the timing of the deal has nothing to do with that.
Along with their newest acquisition, SoftBank owns U.S. based Sprint (S - Free Report) , has stakes in China’s Alibaba (BABA - Free Report) and Yahoo Japan, and recently sold their stake in Supercell to Tencent (TCEHY - Free Report) for $10.2 billion.
ARM has been in decline due to stagnating smartphone sales, of which the iPhone has noticed a notable decrease. Although ARM’s earnings have decreased in the short-term, it is still a key player moving forward in the “Internet of Things” (IoT) market, which our team discussed here.
ARM Holdings currently sits at a Zacks Rank #4 (Sell).
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Arm Holdings opened up 42% on Monday on the announcement that it is to be acquired by the Japanese tech/telecoms company SoftBank (SFTBY - Free Report) .
Based in Cambridge, UK, ARM designs microprocessors, physical intellectual property, and related technology and software. Notably, the company makes designs that are used by Apple (AAPL - Free Report) and Samsung, amongst others.
SoftBank agreed to pay £24.3 billion ($32.1 billion) for ARM, which had a market cap of $22 billion before the deal. Softbank plans on “preserving the ARM organization, including ARM’s existing senior management team, brand, partnership-based business model and culture” as per their official announcement.
SoftBank has been eyeing ARM for some time now, but a post-Brexit pound that is down 12% against the Japanese Yen may have served as a catalyst, although SoftBank claims the timing of the deal has nothing to do with that.
Along with their newest acquisition, SoftBank owns U.S. based Sprint (S - Free Report) , has stakes in China’s Alibaba (BABA - Free Report) and Yahoo Japan, and recently sold their stake in Supercell to Tencent (TCEHY - Free Report) for $10.2 billion.
ARM has been in decline due to stagnating smartphone sales, of which the iPhone has noticed a notable decrease. Although ARM’s earnings have decreased in the short-term, it is still a key player moving forward in the “Internet of Things” (IoT) market, which our team discussed here.
ARM Holdings currently sits at a Zacks Rank #4 (Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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