Thursday, August 20, 2015

Ambarella: Too Much Drone Hype


  • Ambarella maintains a lofty valuation due to the potential for drones.
  • The excitement over the drone market doesn't match the potential near-term revenue.
  • Ambarella remains a good company with a stretched valuation that offers limited upside for investors.
Prior to the recent selloff in Ambarella (NASDAQ:AMBA), the market had gotten extremely excited over the potential of drones. The maker of high powered, video compression chips has been on fire over the last couple of years on the initial connection with GoPro (NASDAQ:GPRO) cameras and now drones.

Read the full article on Seeking Alpha.


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