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

Articles You May Like

‘I’m nervous about the market’: We’re living off my pension as practice for retirement, but I’m afraid of a market correction
A retirement expert’s best advice? Don’t retire.
My mother is giving my son $100K for a down payment. Can she wait until the last minute to put the money in his account?
Top Wall Street analysts suggest these stocks with attractive upside potential
Want to retire abroad? Read this instead of the usual ‘best places to retire’ lists.