Ambarella Has Lots of Cash
Ambarella, Inc.'s (NASDAQ: AMBA) stock has sold off roughly 15% since it reported its quarterly earnings on June 6. Most of the negative sentiment is associated with what the company is forecasting as a flat year for revenue due in large part to the anticipated loss of GoPro, Inc. as a customer.
Although management is forecasting 25% revenue growth this year at the midpoint of guidance excluding GoPro and building a business in computer vision chips, investors are having trouble looking past the near-term numbers. And that might be presenting an opportunity for those with a long-term perspective.
This company has a secret weapon on its balance sheet: lots of cash and no long-term debt, which can power the company through to the introduction of its new computer vision product line slated to bring in revenue next year.
Source: Fool.com
Ambarella Inc. Stock
Currently there is a rather positive sentiment for Ambarella Inc. with 26 Buy predictions and 5 Sell predictions.
With a target price of 74 € there is a positive potential of 42.09% for Ambarella Inc. compared to the current price of 52.08 €.
