TradingKey – On July 29, Arm Holdings (ARM) published their fiscal first quarter, and blew past every estimate. The stock fell 8% upon the news. It has since climbed with the broader chip stock rally to $273, but the initial reaction demonstrated the problem with Arm. Even with stellar quarterly numbers, shares may be fairly priced, and stock performance is negatively impacted by a hard beat.

The first quarter numbers emerged as an impressive 22% revenue increase, with the first quarter record numbers coming in at $1.29 billion. The guidance for the second quarter was expected to be low, but Arm published guidance above analyst estimates for the second quarter. The question is what all of that is worth.