Arm's debut isn't a barometer for the IPO market

Arm's (ARM) stock skyrocketed in its opening day on the Nasdaq Thursday. But IPO experts warn that the British chipmaker's debut on the public markets isn't indicative of how other newly listed companies may perform.

Arm, a formerly public company, was taken private by SoftBank in 2016. The well-established chip designer says it powers 99% of premium smartphones.

"It's a licensing business model with mid-90s gross profit margins," Greg Martin, a managing director at middle-market investment bank Rainmaker Securities, told Yahoo Finance Live. "So it's a very different company. And I think we have to be careful about drawing insights ... The next few new issuances are more likely truly representative of whether there's a real reopening of the IPO market." Read Full Article...