ARM Holdings Still Going Strong
By Chris on February 3, 2011
Back on September 2, we penned a post about ARM Holdings and discussed how Recorded Future can be used to supplement traditional fundamental equity research with news analytics. We pointed out that the stock had been moving up on the basis of growth in the smartphone and tablet PC market, a potentially strong partnership with Microsoft, and takeover rumors. Five months later, the stock continues its fantastic run, up more than 70% while the Nasdaq is up just 26% over the same period.
Much of ARM Holdings’ growth has come over the last month after rumors of a takeover by Intel, Microsoft’s announcement that it will be supporting ARM chips with its next version of Windows, and record-breaking earnings driven by fantastic iPhone and iPad sales.
The Recorded Future timeline for Arm Holdings shows a potentially compelling early signal of the stock’s upswing as we look at its momentum in online media.
We see a tremendous spike in momentum at the beginning of January as well as a great deal of positive sentiment around the stock at the same time. While this momentum has since faded a bit, we see a smaller spike in momentum forming at the beginning of February.
Is this the wisdom of the crowds or just a crowded trade? Time will tell. The stock may be richly valued, but if an environment that fosters explosive growth in mobile technology persists, then ARM could indeed be a potential acquisition target.