Mobileye: Damaged Goods
Mobileye Global warns of inventory issues and expects 2024 guidance to fall far short due to excess supplies caused by double EyeQ ordering during Covid. The ADAS chip company guided to 2024 revenues of only $1.9 billion suggesting a bigger problem than the 6 to 7 million excess chip inventory at Tier 1 customers. MBLY stock still trades at an elevated 12x 2024 sales targets despite the 25% dip. Since going public via the spin-off from Intel Corporation ( INTC ) in late 2022, Mobileye Global Inc. ( NASDAQ: MBLY ) has constantly traded at a premium valuation. The ADAS chip company just announced a massive warning due to inventory issues at the end of 2023. My investment thesis remains Bearish on the stock even after the nearly 25% loss in early trading today, January 4th. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please read the disclaimer page for more details.