Tuesday, May 21, 2024
HomeTechnologyCEO Of Ark Cathie Wood Claims She Stayed Away From The Arm...

CEO Of Ark Cathie Wood Claims She Stayed Away From The Arm IPO Rush. This Is why

Cathie Wood, CEO of Ark Invest, stated that she did not take part in Arm’s massive IPO last week because she believed the British chip manufacturer was overvalued in relation to its competitive position.

Thursday saw the listing of Cambridge-based Arm on the Nasdaq in New York at an initial public offering price of $51 per share, representing a valuation of about $60 billion. Arm is owned by Japanese financial juggernaut SoftBank. On the first day of trade, the shares increased by over 25%, closing at $63.59.

Since then, the initial excitement has subsided, and the price has fallen steadily each day, ending Tuesday’s trading session at $55.17.

On Wednesday, Wood claimed that “innovation is undervalued given the immense prospects that we see ahead, catalysed very importantly by artificial intelligence,” and that the recent frenzy surrounding AI-exposed firms was justified.

She went on to say, “As far as Arm, I think there could be a little bit too much emphasis on AI when it comes to Arm and perhaps not enough focus on the competitive dynamics out there.”

Source (CNBC)

- Advertisment -

Most Popular

Recent Comments