simply because 1 AMBA chip turns into multiple revenue streams for GPRO. In basic terms, you don't continuously purchase an AMBA chip every time you take a picture or film something. AMBA is at GPROs point of sale and then it stops there.
GPRO is a content enabler and plays a huge part in where live entertainment is going. Currently you can't do it without GPROS helps. GOOG partnered with GPRO for a reason.
ASide from that, Think of the user base alone when it starts with its cloud service and sharing platforms. That by itself will propel GPRO.
I used the NFL and other entertainment as an example of monetizing content. Not that GPRO will profit off of NFL content. However, since you asked the question. NHL teams have already made deals with GPRO and NBA and the NFL will soon follow suit.
Yes, soon GPRO will enable the NFL to provide VR/360 degree 1080/4k content to peoples living room. Everyone will soon be able to view a live NFL game as if they were sitting in the 1st row on the 50 yard line looking left and look right. Do you see now?
This is only example as anyone with a GPRO camera will upload their own content to different platfroms such as Roku, Netflix. of course GPRO channels on these platfroms will be curated.
From the Camera (1 AMBA chip) to the Kolor editing, to the App, to the cloud, to Netflix, Roku, TV, to everyone's handheld device. Multiple streams of revenue.
Now do you see?
Im not sure you are watching the same ticker as I am because it looks like GPRO uncorrelated itself from AMBA today.
AMBA - 1.31%
and you were saying?
Maybe this will help you understand.
Its about two things. the content and the software. AMBA is only one part of GPRO and makes money at the ponit of sale. But the Content GPRO creates, People using Kolor to create it and the platforms that people will view this content on is where the real money is.
Sure, you can buy a Camera and a little will go to AMBA but NFL, NBA, NHL...etc (all sports) Netflix, TV....basically entertainment makes the mega bucks with its content.
If you want to think small and believe that All revenue streams lead to the AMBA chip be my guess and live short sighted.
My feeling is that all who invested in AMBA decided to do so because of the popularity of GPRO and drones.
So why not go to what made AMBA well known? GPRO is entering the drone market and while currently they are more well known for their hardware,cameras and then drones, it is the content that is the most valuable.
Facebook, Google and Apple are all invested heavily in VR and then next generation of entertainment. They will have to go through GPRO and Kolor (GPRO aquistion) in order to make the content available. the way we view live events, sports, entertainment will soon be changed in the next few years.
theres a reason GOOG reached out to GPRO. If you think GPRO is only a camera company then you haven't done your DD. Knowledge is key to any investment.
GPRO with its Kolor acquisition is not just a wearable product but a content enabler. Think of the platforms its content will be shown on. Think of the gpro software everyone will be using to edit video in this realm.
The way we view the world (sports, live events, news, destinations, etc..) via apps, tv, virtual reality will be completely changed in the next few years.
sell AMBA buy GPRO
Not just a wearable product but a content enabler. The way we view the world (sports, live events, news, destinations, etc..) via apps, tv, virtual reality will be completely changed in the next few years.
Like I said on Friday. $105 area.know the pull back levels and know the float (low, REAL low). 15% correction wasn't hard to call.
Good luck trading ya'll. Learn baby..learn.
Like I said on Friday. $105 area. All one had to do is look at the low float of this stock and know the pull back levels. Good luck trading ya'll. Learn baby..learn.
Yes, I think its entirely possible. Float is extremely low. So it makes AMBA incredibly volatile. It traded from $127 to $118 today and then went to $117 after hours. 105 area is totally possible.
"This chip designer isn’t disrupting an industry or defining a new marketplace. Wall
Street’s love affair with Ambarella unjustifiably started with the IPO of GoPro. Citron
has seen this movie too many times, and when the shine comes off investors will be
looking at a chip company that will trade at the same valuation multiple of its peers --
which in this case put the stock at $30. "
"even if you believe that the continued growth
rates in the action camera space are realistic, likely a disproportionate percentage of
that growth will come from the lower end, powered by a cheaper chipset from
Ambarella or its competitors. Moreover, given the commoditization in the low end,
Ambarella investors should not overlook the eventuality that GoPro will inevitably
decide to include an additional chipset manufacturer for its lower end offerings."
How about this for Ridiculous?
Uber is now held up as the valuation wunderkind of the sharing economy. Its disruptive
technology and business model is changing the face of transportation worldwide. It
could be argued to be the best growth story of the 21st century. Yet despite the
unprecedented rapid adoption and market dominance, Uber’s valuation in fact
expanded slower than this little known chipmaker operating in a niche market over a
At the time when Ambarella went public in October 2012, the Company was forced to
price shares at 40% discount to its marketed range. Upon completion of its IPO,
Ambarella's enterprise value was $60 million. In a mere 32 months since, its valuation
has expanded to over $3.7 billion, a growth of over 60 times.
Compare this to Uber. Uber raised money in December of 2011 at $300 million valuation
and August of 2013 at $3.5 billion valuation. A simple bootstrapping gives Uber roughly
$1 billion valuation in October of 2012. The most recent funding round put Uber at $40 billion valuation -- or 40-fold growth, a substantially less impressive valuation expansion
when compared to Ambarella's stratospheric rise over the same period.
You can just forget about Tesla and Netflix -- The Ambarella bubble has just left them in
Normally this type of price movement is reserved for companies that are either wildly
disruptive or enjoy an open blue sky competitive landscape -- Ambarella is