Why Ambarella Shares Are Diving After The Close
Portfolio Pulse from Adam Eckert
Ambarella Inc (NASDAQ:AMBA) reported Q2 results and issued weak guidance, causing its shares to trade lower in after-hours session. Q2 revenue was $62.12 million, slightly above estimates, and EPS was a loss of 15 cents, beating estimates for a loss of 21 cents. However, revenues were down 23% YoY and the company ended the quarter with $216.5 million of cash, down from $227.4 million sequentially. The company anticipates Q3 revenue of $50 million, significantly lower than estimates of $67.6 million.
August 29, 2023 | 8:32 pm
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NEGATIVE IMPACT
Ambarella's weak Q2 results and lower-than-expected Q3 guidance may negatively impact its stock price in the short term.
Ambarella's Q2 results were weak with a 23% YoY decrease in revenues. The company's Q3 guidance is also significantly lower than estimates, which could lead to a decrease in investor confidence and a drop in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100