Why Ambarella Stock Is Down 15% Today

Shares of Ambarella (NASDAQ: AMBA), a maker of specialized semiconductor chips for high-definition video, fell 15.4% through 10:20 a.m. ET on Wednesday despite beating analyst targets for both sales and earnings for the fiscal second quarter of 2023.

Heading into the quarter, Wall Street had anticipated that Ambarella would earn $0.19 per share (pro forma) on $80.2 million in sales. In fact, this morning Ambarella reported a profit of $0.20 per share on sales of $80.9 million, beating on both the top and bottom lines.

And yet, Wall Street wasn't pleased. TheFly reported four separate analyst cuts to its price target -- and one out-and-out downgrade, from Summit Insights -- in response to the news. So what did Ambarella say that was so disconcerting?

Source Fool.com