Why ARM, SMCI, and Microstrategy Rose By Over 10%
Three technology stocks gained over 10% last Friday’s trade. Arm Holdings (ARM) gained 10.05%. The speculation increased after Nasdaq (QQQ) added 1.77% on the day. ARM has strong growth, profitability, and momentum. ARM stock valuations are highly unfavorable. Its non-GAAP P/E is over five times higher than the sector median.Super Micro Computer (SMCI) rose by 10.9%. Valuations are favorable at a 15.21 times non-GAAP P/E, compared to a 24.71x sector median. SMCI stock trades at a discount since the firm has de-listing risks. Although the CEO is confident that it will complete its filings on time, the market is not convinced.Bears hold a 15.64% short interest against SMCI stock. Rational investors may consider safer names like Hewett Packard Enterprise (HPE) and Dell Technologies (DELL) instead. Conversely, HP Inc. (HPQ) is not a stock to buy. The latter depends on desktop PC and laptop sales for its growth. Dell and HPE should thrive as server sales increase in 2025.Microstrategy (MSTR) jumped by 13.22% to close at $339.66. The rally halted at the resistance line on the 50-day simple moving average. The firm will raise up to $2 billion by selling preferred stock. It continues to accumulate Bitcoin (BTC-USD). Last week, BTC prices rose by 5.39%, closing at $97,735.
Three technology stocks gained over 10% last Friday’s trade. Arm Holdings (ARM) gained 10.05%. The speculation increased after Nasdaq (QQQ) added 1.77% on the day. ARM has strong growth, profitability, and momentum.
ARM stock valuations are highly unfavorable. Its non-GAAP P/E is over five times higher than the sector median.
Super Micro Computer (SMCI) rose by 10.9%. Valuations are favorable at a 15.21 times non-GAAP P/E, compared to a 24.71x sector median. SMCI stock trades at a discount since the firm has de-listing risks. Although the CEO is confident that it will complete its filings on time, the market is not convinced.
Bears hold a 15.64% short interest against SMCI stock. Rational investors may consider safer names like Hewett Packard Enterprise (HPE) and Dell Technologies (DELL) instead. Conversely, HP Inc. (HPQ) is not a stock to buy. The latter depends on desktop PC and laptop sales for its growth. Dell and HPE should thrive as server sales increase in 2025.
Microstrategy (MSTR) jumped by 13.22% to close at $339.66. The rally halted at the resistance line on the 50-day simple moving average. The firm will raise up to $2 billion by selling preferred stock. It continues to accumulate Bitcoin (BTC-USD). Last week, BTC prices rose by 5.39%, closing at $97,735.
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