Arm Holdings Faces First Major Test Since IPO As Insider Share Lockup Expires
• Arm Holdings faces a major test as its post-IPO insider lockup period expires on Tuesday, which could create volatility in the AI stock's share price.
• Over 90% of Arm's shares are still held by insiders like Softbank and employees, who will now be able to sell their stakes for the first time.
• However, Softbank and CEO Masayoshi Son are unlikely to sell significant portions of their stakes since that would decrease the value of their remaining shares.
• Arm has strong fundamentals and competitive advantages in the growing AI market that make it a good long-term investment.
• Investors should view any lockup expiration-related pullbacks in Arm's share price as potential buying opportunities given the company's bright future.