On May 11 DIS closed at 108 and change. Here we are 3 months later and back to that level after reaching $122. Up fast and down to earth fast. A great stock that got ahead of its self a little bit. No big deal,
Next earnings and guidance. They tend to be conservative and beat handily. Hopefully when they gave guidance this last time it was also conservative. Because if they don't do both we will find out what ugly really is.
I never could have imagined AMBA going this low. I had been kicking myself for selling at the bottom of the first $hitroen short report. Never thought I would see it back here again. This has to be the opportunity of a lifetime. Go longs.
Ambarella AMBA -4.39% has gone from a stock market darling to the red-headed step child in a span of what seems to be a blink of an eye.
Less than a month ago the shares of the company were flying high at around $120 per share and the company could do no wrong.
I had a dark-side (short) position on the company via puts from about two months ago which we covered into yesterday’s slide after the company’s results were not met with investor enthusiasm to say the least.
The company reported strong numbers for Q2 with earnings of $0.88 per share on revenues of $84.2 million versus expectations of $0.81 per share and $81.6 million respectively.
The problem was with guidance for the current quarter. Ambler said in its earnings call on Tuesday that revenues for the quarter from its wearable camera unit would come in lower for the current quarter (ending October) versus expectations.
At the mid-point of revenue guidance, Ambarella said its revenues for the October quarter will be around $91.5 million versus expectations of $92.2 million. Give me a break! $700,000 lower at the mid-point of guidance does not deserve a haircut of $17 per share or a decrease in market capitalization of $500 million.
To me, this is more of an issue with GoPro (AMBA is GPRO’s largest supplier) than Ambarella.
In fact a GPRO short would have made sense were it not for the fact that GPRO has also been a bit over-cooked on the downside here.
However, around current levels of $78 per share, a good guy (long) investment is beginning to look good to me and I am taking a small starter position which I shall leverage with call options as the opportunities arise going forward.
More importantly, most of the Street analysts should be out with their negative reports and lowered estimates and price targets further reducing negative chatter going forward.
Systemic or market risk remains true but it does so for every investment not just Ambarella.
Dipping my toes at
When a stock goes up as much as AMBA did and then disappoints it will take a lot more than upgrades to make it reverse what it has been going through. My guess is that it will take a couple of stellar quarters before there is much change up in the price. I do not trade and so cannot tell you about the technical side of this stock. Just observations from past experience.
Yeah keep up that talk about a buyout and a $150 price tag. I like AMBA and hope they do well. Have owned for a little while and made money. But it is going to take a lot of time to get this back up to previous levels. I hope I am wrong but do not believe so. So you pumpers can keep pumping and be just as annoying as the shorts.
Starting to feel like this could get ugly. We try and differentiate GPRO from AMBA but for now they are still tied at the hip because what made AMBA famous is great earnings and its connection to GPRO. But now GPRO is tanking and I fear AMBA will go with it at least temporarily. If the earnings report in December is not robust with great guidance this could be dead money for a while. I know this will tick a lot of people off but this board is all about opinions.
Otherwise it could be ugly. Ugly for AAPL is staying in the $120's for another quarter.
In my Ed Jones account but not Schwab. I like this twice yearly payout better than one per year. And I love DIS!
Cursed like the Shalomers who own it? Synagogue of Satan? You are a hate filled anti Semite whose opinions are from way in the past. Please go away!
Ambarella Inc. (NASDAQ: AMBA) was maintained as Overweight but the price target was cut to $102 from $123 (versus a $55.04 prior close) at Pacific Crest. The firm’s lower price target was tied to its GoPro estimates
Buy AMBA or Buy GPRO? The stories up I have read are for AAPL to buy GPRO sine the price is so low. Interesting to watch.