Click here for the PDF: The Weekly Beacon August 25 2023

We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.

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This weeks issue: IPO market, Arm Holdings, British technology, SoftBank, WeWork, Vision Fund, AI stocks, Nvidia, Computer chips, Zero emissions, Electric vehicles, Natural gas charging EVs, Dick’s Sporting Goods stock, Dick’s Sporting Goods earnings, Retail earnings, Theft at retail stores, Organized retail theft, Safety shift, Safety by U.S. cities, Real estate investing in the U.S., Oil consumption, Increased energy demand, Energy equates to prosperity, Home sales by month, Home sales by price, Mortgage rates, Zuckerberg and Threads, Threads vs. Twitter.

Arm files for American IPO

Arm Holdings filed for an initial public offering on Monday. Arm Holdings is owned by the investment firm SoftBank and is an English technology company that designs chips found in phones. Arm is the architect of chips found in 99% of smartphones. The company is not a chipmaker but an architect of chip-making. The company designs, and programs chips instructing other companies to build the chips. The company is seen as a neutral party in the technology world as its designs are in most smartphones including Apple, and Samsung devices.

Arm Holdings is seen as the crown jewel in the British technology sector. According to the United Kingdom does not have one of the top 100 public technology companies across the world (rankings are based on market capitalization). Countries that have a company that makes the list include the U.S., Taiwan, China, South Korea, Netherlands, Germany, Japan, France, Canada, Argentina, Switzerland, Thailand, Spain, and Israel. It’s safe to say the British technology sector is lacking.

Jumping back to Arm’s IPO filings. The company is filing for an IPO on the Nasdaq and its ADR shares will represent ordinary shares in the American market. In its filing, Arm Holdings reported revenue of $2.68 billion for the fiscal year ended in March 2023, down slightly from the year prior’s top line number of $2.7 billion. Net income over the same period was $524 million. The company reported $675 million of
revenue for its latest quarter, which ended in June 2023, down from $692 million the year prior. It reported that net income more than halved to $105 million in the quarter.