What's Going On With Ambarella Stock After Earnings?

Author: Erica Kollmann | August 28, 2024 10:12am

Ambarella, Inc. (NASDAQ:AMBA) shares are trading higher Wednesday after the company posted better-than-expected second-quarter results. Here's a look at the details from the report. 

The Details:

Ambarella beat analyst expectations on the top and bottom lines with quarterly losses of 13 cents per share and revenue of $63.724 million. 

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“In our second quarter, we achieved record revenue for our edge AI inference products, and we are anticipating double-digit sequential growth in our total revenue for the third quarter,” said Fermi Wang, President and CEO. 

“Company specific drivers are more than offsetting the mixed global economic environment. We are now realizing initial revenue ramps from certain IoT and Automotive customers, especially from our new products. "

Multiple analysts updated coverage on Ambarella following the print: 

• Craig-Hallum analyst Richard Shannon maintained Ambarella with a Buy and raised the price target from $80 to $85.
• Morgan Stanley analyst Joseph Moore maintained an Overweight rating and raised the price target from $67 to $73.
• Needham maintained its Buy rating and $90 price target on the stock.
• TD Cowen analyst Matthew Ramsay maintained a Hold rating and raised the price target from $65 to $75.
• Stifel maintained its Buy rating and raised the price target from $75 to $80.

AMBA Stock Prediction 2024:

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Ambarella have an average 1-year price target of $78.08, representing an expected upside of 47.91%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Ambarella, while 10 analysts have bullish ratings. The street high price target from Needham is $90, while the street low from Wells Fargo is $55.

AMBA Price Action: According to Benzinga Pro, Ambarella shares are up 12.7% at $59.47 at the time of publication Wednesday.

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Image: Courtesy of Ambarella, Inc. 

Posted In: AMBA