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There are 5 articles on this stock available only to PRO subscribers.
Ambarella: A Good Company Amid Burgeoning And Addressable Markets
- Ambarella has customers in markets with interesting growth potential, which protect the company from the volatility of its important customer GoPro.
- The popularity of GoPro's new products might trigger greater sales for Ambarella in what remains of this year.
- Ambarella presents solid financials that enable it to endure pullbacks associated with the volatility of major customers or negative macroeconomic conditions.
- Possible challenges and risks include low barriers of entry into the market and negative macroeconomic conditions in important markets.
- A focus on the company's relationship with GoPro has obscured the growth potential of Ambarella's other segments.
- The company is leveraged to multiple global trends that are driving the adoption of newer and more complex cameras, and the chips that power them.
- Continued improvements in operating leverage are flowing through to the bottom line, driving double-digit EPS growth.
- Volatility in shares of GoPro can be used to initiate positions if they lead to a decline in shares of Ambarella.
A Few Reasons Why Ambarella Is Set For More Upside
- Ambarella's revenue and earnings are growing at a good pace as its products are gaining traction in several markets.
- Ambarella's performance should continue improving on the back of an improving client base and increasing applications of cameras.
- Ambarella's valuation might seem expensive on a trailing basis, but its forward P/E indicates that the stock can appreciate further.
Ambarella Investors Should Seek Shelter After The Stock's Strong Run
- Taking money off the table following an almost 500% two-year run is the smart thing to do.
- These shares, which trade at a P/E of almost 50, are valued on the assumption of perfect execution.
- While Ambarella enjoys solid margins today (up 330 basis points to 65%), history has proven that margins don't expand forever.
- The stock price has followed the strong growth in fundamentals and the stock is up over 108% during the last twelve months.
- Despite a massive rise in stock price, the stock is still trading at lower multiples compared to the industry averages.
- Growth prospects remain strong for almost all the segments of the company.
- GoPro is the largest contributor toward Ambarella's revenues and demand from GoPro will remain strong as the company launches its new product at the end of this year.
- GoPro's sales are growing at an impressive rate, which means there is danger of lower supplier orders from GoPro.
- Ambarella's results and outlook indicate that the company is benefiting from the growing applications of cameras.
- Ambarella's supplier relationship with GoPro and a number of other camera makers will allow it to tap the camera market globally.
- Ambarella also is gaining traction in the automotive camera market.
- Ambarella's valuation and a strong balance sheet indicate the company's robustness.
Ambarella: Fresh Highs After Blowout Third Quarter Guidance
- Ambarella posts solid results, issues a blow-out third quarter outlook.
- The company has been on a big run over the near past two years, driven by impressive and profitable growth.
- While I have missed the opportunity to purchase shares multiple times in the past, I have to show discipline and refrain from chasing the current momentum.
- AMBA had a blowout quarter and the stock price has been climbing. What's next?
- Forward guidance given surpasses estimates from the analysts.
- The business sector that Ambarella is in has just scratched the surface, but wait, there's more.
5 Terrific Reasons Why Ambarella Should Be In Your Portfolio
- Ambarella's results have been strong, driven by the adoption of its products in different markets.
- Ambarella is counting on innovation to drive its growth.
- Ambarella has partnerships with companies like Google on the back of its impressive product development.
- Ambarella's relationship with GoPro can take it to new highs.
- Ambarella's fundamentals are solid and its earnings are expected to grow at a rapid rate going forward.
- Dividend investors are quite capable of finding a growth stock that fits nicely in their retirement portfolio.
- Just because a company does not pay a dividend yet, does not mean it should not be researched for growth potential.
- For Ambarella, I believe the numbers speak for themselves.
Ambarella: The Next Big Tech Play That Investors Shouldn't Miss
- Ambarella is set to benefit from GoPro following the IPO as the sports-camera maker is highly dependent on the chip maker.
- Ambarella's growth in automotive sets it up to benefit from the growing application of cameras in vehicles.
- Ambarella has a strong balance sheet, while an enticing valuation makes it a solid buy considering its expected earnings growth.
- Ambarella's shares are down 6% in 2014, however the company's prospects look bright.
- Ambarella reported a strong quarter, which is a sign of better things to come.
- New product launches will prove to be profitable for Ambarella.
- Ambarella is also set to benefit from the GoPro IPO.
Ambarella - Reassuring Earnings And Guidance Delivers Comfort To Investors
- Ambarella comfortably met first quarter expectations.
- The second quarter outlook and upbeat comments for the rest of the year are comforting for investors.
- I am a buyer on further dips as valuation appeal has improved significantly in recent months.
- Ambarella has a big opportunity ahead as the market for wearable and action cameras improves.
- The company's relationship with Google and GoPro has given it good visibility and a chance to improve sales.
- Ambarella has a diversified customer base in several markets, such as Russia and China, which gives it ample opportunity to grow the business.
- The company's focus on product development and an attractive valuation are more reasons why the stock looks interesting.
- I wrote about both of these stocks well before they increased in price.
- In the case of Venaxis, I interviewed the CEO and the article was awarded an "outstanding contribution" feature.
- With good news today, perhaps the stocks will begin my anticipated rise in value.
Ambarella: The Next Big Tech Play You Shouldn't Miss
- Ambarella’s strong financial performance displays its solid execution and customer wins.
- Ambarella is in partnership with key customers, including in emerging markets.
- The GoPro IPO and foray into wearable devices are expected to be big boosts for the company.
Thu, Nov. 20, 9:34 AM
- The price set by GoPro (NASDAQ:GPRO) for its 10.4M-share offering is 5% below a Wednesday close of $79.
- As previously stated, the company is offering 1.3M new shares, and 9.1M on behalf of existing holders (4.1M from Nicholas/Jill Woodman). The holders are providing underwriters a 1.55M-share overallotment option.
- Ambarella (NASDAQ:AMBA) is heading in the same direction as GoPro, as it's often prone to do.
Tue, Nov. 18, 10:47 AM
- Down AH yesterday after providing details for the stock offering it announced last week, GoPro (GPRO +4%) is heading in the other direction in early trading, as is video processor supplier Ambarella (AMBA +6.4%). Ambarella has made fresh highs, and is now up 53% YTD.
- GoPro had 9.6M shares shorted as of Oct. 31, and Ambarella 6.9M shares (25% of its float).
Mon, Nov. 3, 12:51 PM
- GoPro (GPRO +7.3%) is now up 21% since the company provided a Q3 beat and strong Q4 guidance on Thursday afternoon. Video processor supplier Ambarella (AMBA +6.1%) is up 13%.
- GoPro has received plenty of positive sell-side notes on account of its numbers and related commentary. FBN has predicted unit sales will nearly double Q/Q in seasonally strong Q4 to 2.1M, thanks to strong HERO4 camera sales.
- Wedbush, for its part, is pleased with CC remarks about strong demand for the $499 HERO4 Black (costs $100 more than the HERO3 Black did before the HERO4 launch), as well as management's plans to monetize both GoPro-produced and user-generated YouTube content via ads.
Thu, Oct. 30, 5:39 PM
- With a major camera refresh boosting sales, GoPro (NASDAQ:GPRO) guides on its Q3 CC for Q4 revenue of $550M-$580M and EPS of $0.65-$0.69, soundly above a consensus of $499.9M and $0.53.
- Gross margin is expected to be at 44% (+/- 1%) vs. 44.5% in Q3. Opex is expected to total $105M (+/- $2.5M).
- GPRO now +8.4% AH. AMBA +2.8%.
Thu, Oct. 30, 5:08 PM
- Following a 30%+ selloff from its early-October high, GoPro's (NASDAQ:GPRO) Q3 beat is being well-received.
- Gross margin rose to 44.5% from 42.2% in Q2 and 33.5% a year ago, providing a boost to EPS. After backing out stock compensation expense (rose over 5x Y/Y thanks to the IPO), opex rose 56% Y/Y to $97.1M.
- GoPro content published on YouTube rose 92% Y/Y, and video views on GoPro's YouTube channel rose 99%.
- Video processor supplier Ambarella (NASDAQ:AMBA) is getting a lift from GoPro's numbers.
- Q3 results, PR
Wed, Oct. 15, 10:29 AM
- Pac Crest has launched coverage on Ambarella (NASDAQ:AMBA) with an Outperform rating and $47 target.
- Shares have rallied after starting the day (like most other stocks) in negative territory. They were down 24% from a Sep. 30 high of $46.78 as of yesterday's close.
Fri, Oct. 10, 9:59 AM
- Microchip's (MCHP -12.5%) calendar Q3 warning, which was accompanied by a declaration that it believes "another industry correction has begun and that this correction will be seen more broadly across the industry in the near future," is taking a heavy toll on chip stocks (SOXX -5.5%).
- Intel (INTC -4.2%) and many other chipmakers have joined the several firms that sold off AH yesterday in going in the same direction as Microchip: MU -5.8%. FSL -8.5%. BRCM -3.6%. SWKS -7.5%. RFMD -6.2%. XLNX -4.9%. MXIM -5%. AMBA -5.5%. IDTI -6.7%. CAVM -7.4%. AVGO -10.2%. SMTC -4.3%. SYNA -4.1%. POWI -6.9%.
- Chip equipment makers are also getting hit: AMAT -3.5%. KLAC -3.3%. LRCX -2.3%. UTEK -2.5%. KLIC -2%.
- As Microchip noted in yesterday's warning, the company's very diversified customer base, together with its recognition of distributor revenue on a customer sell-through basis rather than a distributor sell-in basis, often allow it to see industry changes before peers.
- The microcontroller vendor added its warning was driven by a September decline in sales to Chinese clients, and observed it has typically "returned to sequential revenue growth after two quarters" during past downturns.
- Chip stocks have had a good run over the last 12 months, aided by healthy mobile demand and the industry's consolidation wave.
Mon, Oct. 6, 2:48 PM
- JMP has hiked its GoPro (GPRO +7.6%) target by $45 to $105 following U.S. store checks that point to strong early demand for the Hero4 (went on sale yesterday).
- JMP even goes as far as to call Nicholas/Jill Woodman's recent share donation a positive. "Between the crisp execution in getting the Hero4 to market in such a timely manner, the impressiveness of its still expanding online media presence, the ongoing no-show nature of any material competitive threat, and the philanthropic generosity of its founder and CEO, our confidence in the GoPro outlook remains strong."
- Meanwhile, Stifel has hiked its target for video processor supplier Ambarella (AMBA +3.5%) by $3 to $47. "Following over 20 investor meetings with management, we are convinced that Ambarella's focus on high-quality video with highly efficient compression capabilities at low power is redefining applications for video."
- The firm argues Ambarella has at least a 3-year lead on rivals - its HD compression tech is highlighted - and also talks up its non-GoPro opportunities. "While many think of AMBA shares as a play on GoPro, we believe the company is also poised for +20% growth in IP Security, Automotive, Wearables and Drones over the next few years."
Mon, Sep. 29, 10:31 AM
- As rumored, GoPro's (GPRO +4%) $499 Hero4 Black camera (its new flagship) is the first model in the company's lineup to support 4K video recording; it does so at up to 30fps. The Hero4 Black also supports 2.7K recording at 50fps, and 1080p at 120fps. The recording options are likely enabled by a high-end Ambarella (AMBA +3.9%) A7L video-processing SoC.
- GoPro also says the Hero4 Black features new manual control options, better low-light performance, faster Wi-Fi, an improved UI, the ability to take 12MP photos at 30fps, and "an entirely redesigned audio system that captures high fidelity sound with 2x the dynamic range of previous models."
- The Hero4 Silver, launching at a $399 price point, doesn't support the 3 aforementioned video recording options. But it does include the other feature/image quality enhancements, and is also the first GoPro model to sport a touchscreen that allows users to see their footage.
- GoPro is also launching the Hero, a $129 entry-level camera that can record 1080p video at 30fps. Though unlikely to appeal to its core enthusiast base, the Hero could reel in first-time action camera buyers at a time when penetration rates are still relatively low. In addition, the company's free GoPro Studio video-editing software has been revamped.
- The new cameras go on sale on Oct. 5. GoPro and Ambarella are adding to their Friday gains.
Fri, Sep. 26, 7:04 PM
- JPMorgan's Paul Coster reports GoPro (GPRO +1%) channel checks revealed "intra-quarter stock-outs in both the big-box and specialty channels." That has led him to raise his Q3 GoPro sales forecast to the high end of the company's guidance range.
- Coster maintains a Neutral rating on GoPro - he downgraded on account of valuation last month - but nonetheless argues "the firm’s growth prospects are very good, tilted to the upside relative to sell-side expectations." Coster also notes 40% of the float remains shorted, possibly driving a fresh squeeze.
- Video processor supplier Ambarella (AMBA +5.2%) rallied strongly today. Shares set a new high of $42.77 on Tuesday before selling off.
- Previous: GoPro up sharply following Ambarella's earnings
Fri, Sep. 5, 2:06 PM
- Though several firms have hiked their Ambarella (AMBA +3.5%) targets following the chipmaker's FQ2 beat and strong FQ3 sales guidance, shares have given back some of yesterday's AH gains. A possible factor: Ambarella expects gross margin to drop to 60%-62% in FQ3 from FQ2's 65.1% due to a mix shift towards consumer products.
- GoPro (GPRO +5.5%), however, has added to its gains, likely with the help of short-covering.
- Ambarella tried hard on the CC (transcript) not to share specific details about its expected GoPro sales ahead of the Hero 4 launch. But the company did note sports camera-related SoC sales are expected to rise Q/Q and Y/Y (along with automotive and IP security sales), and that Ambarella has "seen a lot more optimism than we saw four months ago in the consumer spaces," which has led to strong build activity.
- Also, CEO Fermi Wang predicted ASPs will rise Q/Q thanks to a transition to Ambarella's A7L processor line from its A5S, and that Ambarella expects all of its markets to migrate in time to 4K video. The Hero 4 is expected to support 4K at 30fps.
- Ascendiant Capital has hiked its Ambarella target to $42, and is pleased with both security and sports camera sales. However, it doesn't expect GoPro to refresh its lineup before early 2015, and notes Ambarella's infrastructure sales are still a weak spot.
- Piper has hiked its GoPro target to $60: It thinks Ambarella's numbers suggest "GoPro's near-term trends are tracking at least in-line with guidance," and notes survey data points to "strong new customer adoption" of GoPro's cameras.
Fri, Sep. 5, 9:15 AM
Thu, Sep. 4, 5:57 PM
- Ambarella (NASDAQ:AMBA) has guided on its FQ2 CC for FQ3 revenue of $60M-$64M, well above a $51.7M consensus.
- Top customer GoPro (NASDAQ:GPRO) is getting a lift from the news, after falling 6.7% in regular trading thanks to a JPMorgan downgrade. Ambarella's guidance could reflect strong build activity for GoPro's upcoming Hero 4 camera.
- Ambarella's FQ2 gross margin was 65.1%, +240 bps Q/Q and +320 bps Y/Y, and above guidance of 61.5%-63.5% (helped drive the EPS beat). GAAP R&D spend +23% Y/Y to $13.5M, SG&A +28% to $6.9M.
- The video-processing SoC vendor says strong sports camera, IP security camera, and UAV demand fueled its FQ2 growth.
- FQ2 results, PR
Thu, Sep. 4, 5:36 PM
Thu, Sep. 4, 4:07 PM
Wed, Sep. 3, 5:35 PM
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