Out Fox The $treet

  Ambarella reported a solid FQ3'21 quarter with revenues growing 64%. The company increased the estimated 6-year automotive revenue funnel to $1.8 billion. Investors should wait for the next 20% dip with the stock trading at 20x FY23 revenues and only forecast to grow at a 20% clip. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » Ambarella  ( AMBA ) shareholders have seen the stock surge in the last few months as the company has signed up several automotive chip deals. The stock was attractive on the last dip into the $80s, but Wall Street has again gotten too excited about the future of their computer vision chips. My  investment thesis  is again Bearish on the stock near $200 until the next major dip. Read the full article on Seeking Alpha.  Disclosure: No positions mentioned. Please review the disclaimer page for more details.  Update - Jan. 25 The predicted dip has occurred. ...

Ambarella beat FQ3 results, but the management team suggested revenues of $10 million were pulled forward. After years of spending, the company still can't disclose any needle moving CV chip deals with automotive customers. The stock is likely to retest $40 with revenue estimates for FY20 and FY21 declining. Despite all of the promises of computer vision chips and the huge stock rally this year,  Ambarella  (NASDAQ: AMBA ) still hasn't generated anywhere near the results and forward expectations warranting the stock rally this year. Investors should expect the stock to come back down to earth based on my  previous research  due to falling expectations for the next couple of years consistent with the past of this chip company and risks of basically operating in China. Read the full article on Seeking Alpha.  Disclosure: No position. Please review the disclaimer page for more details. 

After the close, Ambarella (AMBA) reported FQ4 quarterly results that beat estimates. The guidance for FQ1 just shows how the CV chips can't gain traction. After reporting FQ4 revenues of $51.1 million, the company gave horrible guidance for the current quarter.