2017 was a wild year for Ambarella (NASDAQ: AMBA) shareholders. The stock lurched from a 20% gain to a 25% loss before finishing modestly higher while underperforming the broader market.
That intense volatility suggests investors aren't sure what to make of the camera technology specialist's business. On the one hand, revenue and profitability are declining as competition heats up across its biggest markets. Yet on the bright side, Ambarella's image processing hardware and software innovations are finding their way into more and more products, including in big emerging industry like assisted and autonomous automobiles.
With that big picture in mind, let's look at why Ambarella stock might make a good buy today.
Source: Fool.com