BY ANDREW GIOVINAZZI
February 8, 2024
Yo Pit Crazies,
Take a jump into the Option Pit Event this summer. Space is limited because I want all the Gibsons steak and Chicago dogs for myself! Our goal is to find enough good trades to pay for the trip. We do it every year.
ARM Holding PLC (Ticker: ARM) is expected to take in 761 million dollar in revenue this last quarter, took in $824 million and they are likely to take in much more for 2024. Even if revenues double in 2024, which they likely will, the company will trade at 50x revenue. That is a big premium. And right now it does not matter.
Demand is moving faster than companies can make chips. That is the thing with tech, demand can grow like crazy. Oil is steady, wheat sure there is a market, but it ain’t going up 50% next year. The price can get squeezed now and then but growth is what is driving this market past deficits, interest rates and other USGOV malfeasance.
The low float for ARM is not hurting either. 100 million shares is not that big.
That brings us to Tesla Inc (Ticker: TSLA).
Crazy AI thoughts are crazy AI thoughts
If a robot can fold your laundry forever and it costs $3000 bucks would you buy one? Sweep the floor, wash the dishes? Anyway I am not sure what tech TSLA owns but I do know TSLA plows dough into these areas and Musk recently said he wanted to spin out the tech so he had greater control over it. That is usually a tell.
Upside call flies in TSLA are relatively cheap. I am talking struck with 250 as the closest strike. This is a great subject for me in Pro Today. My goal is 10x by Jun.
To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
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