Can Ambarella Stock Bounce Back After Last Week's 20% Drop?

If there's one painful lesson that Ambarella (NASDAQ: AMBA) shareholders keep learning, it's that beating Wall Street expectations isn't enough. The provider of low-power, high-def video compression and image processing solutions tumbled 20.3% last week, taking a hit after offering up uninspiring guidance. At least two analysts downgraded the stock after Thursday afternoon's report, with another pair of Wall Street pros slashing their price targets.

This is the fifth quarter in a row that Ambarella's stock took a big hit on earnings despite blowing past analyst profit targets. It's been a rough run for the stock that was a market darling a couple of years ago. Ambarella stock hit a new 52-week low on Friday.

Image source: Ambarella.

Source: Fool.com