Arlo Technologies, the smart home security company spun off from Netgear, saw its shares surge nearly 40% on the first day of trading under CEO Matthew McRae's leadership. This significant increase raises questions about whether the company underpriced its initial public offering (IPO). Analysts and investors are now reflecting on the potential valuation of Arlo Technologies and the implications of such a strong market response. With the demand for smart home security solutions on the rise, Arlo's performance may indicate strong investor confidence and a promising outlook for the company's future in the tech landscape.