Opinion: Can Arm’s earnings ever justify its huge stock price surge?

In one of the biggest stories in tech this week, Arm Holdings ARM, a company that only recently returned to being a public company last September, saw a huge spike in its stock, nearly 60% at one point, after its quarterly earnings report. As recently as the end of October, Arm shares traded below $50, yet broke $120 on Thursday. 

To most observers, the sudden valuation increase doesn’t match up to the earnings statements and forward projections. Arm reported $824 million of revenue for the fourth-quarter, up 14% year-over-year,…