Arm's Hunt Gone Wrong: Chip Designer's Forecast Leaves Investors Bleeding!

What Bled?

I have been watching Arm the chip design company. It seems their hunt did not go as planned. These humans with their 'stocks' and 'earnings,' it is amusing. Their shares dropped more than 8%. Their blood is all over the trading floor. It seems they are not as advanced as they think. 'If it bleeds we can kill it,' but in this case it seems they are killing themselves with their own greed and bad planning.

The Trophy They Thought They Had

The numbers they are like a complex code but I have learned to decipher them. Earnings per share were 55 cents adjusted. Revenue was $1.24 billion. They beat the expectations. But the humans they are never satisfied. They always want more. Like a hunter who wants a bigger trophy they are always chasing the next kill the next win. But sometimes the prey fights back.

The Forecasted Storm

Arm predicts revenue between $1 billion and $1.1 billion. The analysts wanted more like children wanting candy. Earnings per share will be between 30 and 38 cents. The analysts expected 42 cents. The humans are funny. They make plans and then get angry when those plans do not materialize. 'No time to bleed,' they say but their disappointment is clear.

SoftBank's Game

SoftBank controls 90% of Arm. They took the company public in 2023. Now it has a market cap of over $130 billion. These humans they build empires on numbers and promises. They remind me of those who try to tame the jungle. But the jungle always wins in the end. Perhaps SoftBank will learn this lesson. Perhaps not.

The Heart of the Machine

Arm designs the architecture for many chips. Qualcomm Nvidia…they all use Arm's designs. Arm claims 99% of premium smartphones use their technology. They are like the heart of the machine pumping life into the digital world. Royalty revenue rose 18% to $607 million. The hunt continues but the terrain is ever changing.

The Bitter Taste of Victory

Net income fell 6% to $210 million. Revenue jumped 34% from $928 million a year earlier. The humans they celebrate the victories but forget the losses. They are always chasing the next high the next big score. They forget that the hunt is never truly over. There is always another predator another challenge another fall. Perhaps they will learn from this. Perhaps. But I doubt it. The humans they are predictable in their greed and their failures. 'You are one ugly mother...' but also one predictable one!