Ambarella tumbles after SA Pro article comes out of embargo


Down moderately yesterday after the publication of a bearish SA PRO article from Ashraf Eassa, Ambarella (AMBA -7.2%) is falling hard today following the article's general release.

Eassa argues the barrier to entry for Ambarella's wearable camera video-processing SoCs isn't that high, and that chipmakers such as Qualcomm, Nvidia, Intel, and Samsung could conceivably enter the market.

He also calls Ambarella's valuation (4.6x EV/sales, 30x EV/FCF) "absurd," and estimates the company's Google Hangouts camera deal would only boost EPS by $0.32 even if 1M units were sold.

Eassa thinks Ambarella's trajectory could resemble that of IPTV chip developer Sigma Designs, whose shares skyrocketed in 2007 but quickly came crashing back to Earth as competition intensified.

From other sites
Comments (9)
  • Regarded Solutions
    , contributor
    Comments (20531) | Send Message
     
    Hmmm, well he also was banging the drum for Intel. Hows that working? AMBA could surprise everyone....of course I am long at 15, so good luck to all.
    5 Feb 2014, 01:14 PM Reply Like
  • tipper 1
    , contributor
    Comments (306) | Send Message
     
    Where have you been RS? Awfully quiet when it comes to GALE and now AMBA
    5 Feb 2014, 03:24 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (20531) | Send Message
     
    I am not reponding on GALE after my interview with the CEO....too tough emotionally....AMBA is a growth small cap stock....an article gets written, which I disagree with and people who bought high are selling low? Silly, but its the stock market. I wont comment on that article either. I believe the Intel action speaks volumes for what to expect.
    5 Feb 2014, 03:52 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9709) | Send Message
     
    RS, pretty poor defense to say, "oh, he called it wrong on INTC, nothing he says matters" :-)
    5 Feb 2014, 04:20 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (20531) | Send Message
     
    this one will be wrong as well it appears, and yes, pointing out that you have been yelling for over a year or so about how amazing Intel is, speaks volumes on how an investor would view your opinion on this one. :)
    Can you handle it?

     

    How about shorting JNJ and writing about it? Looks overpriced dosnt it? LOL
    7 Feb 2014, 08:01 PM Reply Like
  • tipper 1
    , contributor
    Comments (306) | Send Message
     
    Why wasn't RS's comments deleted like mine were because he didn't approve of AE's viewpoint. My opinion was stated in a much less emphatic tone. AE is entitled to his opinion,... it just cost a lot of us lots of money. Remember, money is good for one thing in life....keeping score
    8 Feb 2014, 04:15 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (20531) | Send Message
     
    you had comments removed because you disagreed? Thats absurd.
    8 Feb 2014, 04:17 PM Reply Like
  • Dking234
    , contributor
    Comment (1) | Send Message
     
    You give yourselves too much credit for this market move.
    5 Feb 2014, 02:15 PM Reply Like
  • BuyToSell
    , contributor
    Comments (472) | Send Message
     
    I saw as a great opp to add to position.
    5 Feb 2014, 02:57 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs