Don't Bet Your Arm On Arm Stock (Technical Analysis)

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Jun. 11, 2025 12:44 AM ETArm Holdings plc (ARM) StockARMBay Area Ideas2.06K Followers(12min)SummaryDespite 12% gains since my previous article, I maintain a sell rating on ARM due to fundamental concerns outweighing mildly bullish technicals.Q4 earnings were strong with reaccelerated revenue and margin expansion, but Q1 guidance signals a sharp slowdown and negative EPS growth.ARM's P/S ratio trades at a massive premium to the IT sector, which, I believe, is unjustified given the weak growth outlook.While technical indicators show some bullish momentum, the unattractive fundamental setup leads me to reiterate my sell rating.Sundry PhotographyIntroDespite my sell rating back in March, Arm Holdings plc (NASDAQ:ARM) has gained around 12% since then. I believe the stock remains a sell despite the rebound. In the below analysis, the technicals are determined to be netThis article was written byBay Area Ideas2.06K FollowersI'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honour Society.My motto is John Pierpont Morgan's phrase: 'First-Class Business In A First-Class Way.' I strive to be a premier provider of technical analysis articles on Seeking Alpha by sharing high-quality in-depth pieces with our community of readers.My core values are: Excellence, Integrity, Transparency, & Respect. I always, to the best of my ability, hold true to these values which I believe are key for long-term success.Lastly, I would like to invite all of my readers to leave their constructive criticism and feedback in the comments section so that I can further enhance the quality of my work moving forward. Thank you and God Bless America!Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments