Yabba Dabba Doo-med? Arm Shares Take a Dino-Dive!

Great Googly Moogly! What's the Fuss?

Yabba Dabba Doo! Fred Flinstone here reporting live from my stone age office! I just heard the news about Arm you know those fellas who make the brains for those fancy rock powered gadgets. Seems their shares took a bigger dive than Barney Rubble trying to impress Betty with a new bowling technique! Apparently their predictions for the next quarter weren't as shiny as Mr. Slate's bald head and Wall Street got spooked!

Show Me the Rocks! (or Lack Thereof)

Now I ain't no Wall Street big shot but even I can understand this. Arm made about 1.24 billion clams (that's more than I've ever seen in my life!) which is actually better than expected. They made 55 cents per share adjusted which is also better than analysts expected (52 cents). But here's the rub: they said they might only make between 1 and 1.1 billion clams next quarter. Those fancy pants analysts were expecting 1.1 billion! That's like promising Wilma a pearl necklace and then only giving her a string of pebbles!

Arm ageddon? Not So Fast!

Wilma says 'Hold your horses Fred!' She's right. Seems like Arm still controls a whopping 99% of the premium smartphone market. That's like owning all the brontosaurus ribs at the Bedrock drive in! They make money by letting other companies use their designs like Qualcomm and Nvidia. Those companies then pay Arm royalty fees when they sell those chips. Arm's royalty revenue went up a strong 18%.

A Little Dino Sized Disappointment

Okay okay it wasn't all sunshine and Pebbles. Their net income (that's the money left after they pay all the bills) went down a smidge. It was 210 million clams which is 20 cents a share. Last year it was 224 million clams or 21 cents a share. But hey their revenue overall jumped 34%! That's like doubling your chances of winning the Water Buffalo Lodge raffle!

SoftBank's Got a Big Stake

Some big shot company called SoftBank owns almost all of Arm. They took Arm public last year. Which is a fancy way of saying they let regular folks buy a piece of the company. Even with this little stumble Arm is still worth over 130 billion clams! That's enough to buy a lifetime supply of brontosaurus burgers!

Yabba Dabba Doo or Yabba Dabba Don't?

So what does this all mean? Well even the best companies have their ups and downs. It's like bowling – sometimes you get a strike sometimes you end up in the gutter! I'm bettin' Arm will be back on its feet faster than you can say 'Yabba Dabba Doo!' But only time and the rock solid economy will tell! Fred Flinstone signing off!