Can Drones Save Ambarella?

Videos
Tracey Ryniec and David Bartosiak, Stock Strategists at Zacks Investment Research, discuss the future of chip maker Ambarella, Inc. (AMBA).

Shares have plunged 35% from its all time highs earlier this summer on fears that the company may be a one-trick pony with GoPro (GPRO) as its most prominent customer. A rare earnings miss and warning about weakness in GoPro’s third quarter only exacerbated the worries.

But Ambarella also has a few things up its sleeve. In July, it acquired privately-held VisLabs for $30 million. The Italian company is stocked with PhDs who are developing computer vision and intelligent control systems for automotive and other commercial applications, including autonomous vehicle driving systems.

10% of its revenue is also coming from cameras on drones, which creates another possible opportunity.

With shares selling off, Ambarella now has a forward P/E of 29. This Zacks Rank #3 (Hold) is expected to grow earnings by 54% this year.

Now that shares have pulled back, is this a buying opportunity? Watch our short video to learn what Tracey and David think about Ambarella’s future.

Ambarella Inc: http://www.zacks.com/stock/quote/AMBA?cid=CS-YOUTUBE-FT-VID

Follow us on StockTwits: http://stocktwits.com/ZacksResearch
Follow us on Twitter: https://twitter.com/ZacksResearch
Like us on Facebook: https://www.facebook.com/ZacksInvestmentResearch

Products You May Like

Articles You May Like

Price analysis 6/24: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, SHIB, LEO
‘Disappointing’: Cardano devs delay Vasil hard fork by a month
Active primary, constructive secondary push muni yields lower
CBDC may threat stablecoins, not Bitcoin: ARK36 exec
Rail chief threatens to go over union’s head on UK strikes

Leave a Reply

Your email address will not be published.