Arm: The Biggest IPO of 2023

Also, Starbucks CEO Schultz retires.

Today is Thursday, September 14, 2023.

The Early Bird Index today is 57.16.

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Arm: The Biggest IPO of 2023

Chip designer Arm Holdings (Nasdaq: ARM) goes public today for the largest initial public offering of 2023.

Details: The IPO for Arm Holdings will consist of 95.5 million shares of stock priced at $51 per share. This stock price represents the top range of what analysts expected it to be. The underwriters also have an option to buy up to 7 million additional shares. Altogether, PitchBook puts the valuation for Arm at $54.5 billion, making it the largest valuation for an IPO this year.

More Details: SoftBank will own about 90% of Arm, according to CNBC. Several other tech companies also plan on buying shares of the company.

Background: Founded in 1990, Arm produces semiconductors that are used in many different products. Because of the demand for semiconductors, Arm has seen its valuation skyrocket.

Yes, But: Investors might be tempted to buy Arm’s stock when it goes public. While some IPOs are risers, many have flopped. Take a look at two recent IPOs this year: CAVA Group (NYSE: CAVA) is down 6% and Kenvue (NYSE: KVUE) is down 18%.

Final Thoughts: Arm’s IPO is a big deal for the entire IPO market. The past year or two for IPOs has been lackluster. With Arm, the IPO market is back in the spotlight.


Notable Earnings Today: Adobe (Nasdaq: ADBE), Lennar (NYSE: LEN), RF Industries (Nasdaq: RFIL), LightPath Technologies (Nasdaq: LPTH), eGain (Nasdaq: EGAN) Mytheresa Group (NYSE: MYTE), Copart (Nasdaq: CPRT), High Tide (Nasdaq: HITI), Mitek Systems (Nasdaq: MITK),iPower (Nasdaq: IPW).

Notable IPOs Today: Arm Holdings Ltd (Nasdaq: ARM), Defiance Nasdaq 100 Enhanced Options Income ETF (Nasdaq; QQQY), Bushido Capital US Equity ETF (Nasdaq: SMRI), JPMorgan International Value ETF (Nasdaq: JIV), JPMorgan Global Select Equity ETF (Nasdaq: JGLO).

Notable Equity Crowdfunding Campaigns Ending Today: Vita Imaging (StartEngine), Prepared Plants (Honeycomb).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Producer Price Index / Core PPI (8:30 a.m. ET), Retail Sales / Core Retail Sales (8:30 a.m. ET), Business Inventories (10:00 a.m. ET), Retail Inventories Ex Auto (10:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Starbucks CEO Schultz Retires

It was the end of an era on Wednesday as Starbucks (Nasdaq: SBUX) founder Howard Schultz stepped down from the board of directors as part of a planned transition.

Details: Announced in after-hours trading, Schultz is leaving after 41 years at the company. Starbucks also announced Wednesday that Wei Zhang, who most recently served as senior advisor to Alibaba (NYSE: BABA), will join the board.

Background: Schultz returned to Starbucks as CEO in March 2022 and left a year later. During that time, Starbucks faced challenges such as weaker sales and unionization.

Stock Price: Starbucks is down 3% this year, including a 4% drop in the last 30 days.

Final Thoughts: It might be tough for Starbucks to turn the company around in 2023. A decline in consumer spending could make things worse for the company.

Visa’s Exchange Offer Program

Visa (NYSE: V) declined by 1.17% in after-hours trading on Wednesday after announcing that it was engaging with shareholders about a possible exchange offer program for shares.

Final Thoughts: Despite economic headwinds, Visa’s stock is up 19.50% this year. The stock is dependent on the state of consumer spending.

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Trends to Watch

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