US Stock Movement | Arm Holdings falls over 11% as Q2 profit guidance misses expectations

On Thursday, Arm Holdings fell over 11%, closing at $144.55. In terms of news, the company announced a lower-than-expected second-quarter profit guidance due to increased investment in new product development. The first-quarter earnings report showed that for the quarter ending in June, Arm's revenue grew by 12% to $1.05 billion, with earnings per share of $0.35, both in line with analyst expectations. Looking ahead, Q2 revenue is expected to be between $1.01 billion and $1.11 billion, with analysts expecting $1.06 billion; after excluding certain items, earnings per share are expected to be between $0.29 and $0.37, while the average analyst expectation is $0.35. Arm is continuously increasing spending to better seize opportunities in the artificial intelligence boom. The company's CEO Rene Haas stated in an interview that Arm is committed to developing technologies that will solidify its position in the AI field. He pointed out that in the short term, the surge in spending will impact profits, but in the long term, it will drive stronger growth for the company. "We have made a clear decision to increase investment and are accelerating R&D spending."