Arm debut will help jump-start IPO market, early Airbnb investor Rick Heitzmann suggests

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“People are looking for the new toy,” FirstMark Capital’s Rick Heitzmann says after Arm Holdings stock jumps 25% in its first trading day.

Cramer says Arm IPO infused ‘sidelined money' into the market, steering Wall Street away from the bears

"They had to price for the pop. If Arm would have traded down today, the market would have felt a lot differently," said Heitzmann."They also have a very small and limited float. So, therefore, they're constricting demand and pricing it the right way.""It's the reason they're going to price Instacart down 70% from the last private round." said Heitzmann, who does not have a stake in Arm or Instacart.

Instacart is set to price after Monday's market close and start trading on Tuesday under the ticker CART at the Nasdaq. Heitzmann sees shares of the grocery pick-up and delivery service performing well out of the gate. He notes Instacart's advertising business should also be a boost to its bottom line.

"They're selling very low margin products in order to advertise against them," he said."It's been a good model for supermarkets. It's been a good model for

 

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Arm opens at $56.10 per share in market debut, after pricing IPO at $51Arm Holdings, the chip design firm, has begun trading on the Nasdaq in a long-anticipated IPO at a $54 billion valuation.
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