Arm Holdings (ARM) might fall by over 5% when markets open. Shares lost around 7% in after-hours trading.
Arm earned $0.43 in non-GAAP EPS on revenue of $1.24 billion (+26.1% Y/Y). The non-GAAP results subtracted around $80 million from SG&A. Its research and development line item excluded $204 million in stock-based compensation.
In the retail segment, Nike (NKE) is in a downtrend that began last summer. Other than a small, 5% bounce yesterday, the downtrend suggests that shareholders have no confidence in Nike holding its premium. Last month, the company said it would cut 775 jobs at its distribution centers. It is increasing its efficiency in the supply chain.
Separately, Nike cut 1,000 corporate jobs, announced last summer. The firm is cutting complexity, increasing flexibility, and building a more responsive and resilient operation. Unfortunately, having fewer staff would likely worsen the responsiveness of providing good customer service levels.
Bitcoin (BTC-USD) continued its freefall this past week. Trading at around $72,500, expect Bitcoin volatility to continue. This shakes out the speculators, who bought BTC without questioning its intrinsic value.
Deutsche Bank questioned the end of the “Tinkerbell effect” for Bitcoin. The latest sell-off is a result of President Trump nominating Kevin Warsh. Additionally, BTC holders are booking their highly speculative gains.
The Bitcoin and cryptocurrency “winter” will hurt Coinbase (COIN) and Robinhood (HOOD). Charles Schwab (SCHW) and Futu Holdings (FUTU) do not rely as much on crypto trading volumes. They are more attractive stocks to consider.
