Arm Leads Trio of High-Stakes Earnings After IPOs

Raising a combined $6.5 billion, three of this year’s biggest US tech listings — Arm Holdings Plc, Klaviyo Inc., and Instacart — face crucial earnings tests this week after lackluster starts for their shares.

The trio will be looking to restore investor faith with their first results since going public over a one-week stretch in September. While newly-listed firms typically give reliable guidance to investment banks to help set fair valuations and leave room to impress, a miss could batter the stocks given investors’ willingness to dump perceived losers.

“If you don’t beat your expectations the first few results you’ll be put in the penalty box for quite some time,” said Greg Martin, co-founder of Rainmaker Securities. “You absolutely have to make sure you make your first — and really second — quarter expectations, otherwise you could be in a world of trouble.” … Read Full Article