GRPO sucks, but...

maybe Amba is so oversold on the news it is a value. GPRO missed big just like they promised and settled at about 8.7% loss after hours according to last trade on Yahoo. Expect another dip at the open as people unload.

This article says Amba has good prospects in drones, surveillance, etc…

Ambarella (AMBA) may be one of the most compelling investments in all of technology right now. In a world where everything looks a bit toppy and frothy, this might actually be a value play.

But wait, there’s more!

A fool article is not so sanguine……

Ambarella bulls often highlight the company’s growth potential in drones. Unfortunately, image processing chips for drones still only account for about 10% of Ambarella’s sales. Meanwhile, Qualcomm (NASDAQ:QCOM) has been aggressively expanding into the same market with mobile SoCs for drones. Last June, Morgan Stanley analysts declared that Ambarella’s SoCs had a cost advantage against Qualcomm’s SoCs, but that it would lose that advantage if cellular connections became standard for drones…

Is one of these stocks not like the others?
It’s silly to blindly sell off all three stocks together, but it’s also reckless to ignore the connections between the companies. Looking ahead, GoPro and Ambarella both believe rising demand for drones will diversify their businesses away from action cameras.

Unfortunately, there’s no guarantee drones will evolve from niche devices into mainstream ones. Moreover, their high price tags and new registration rules in the U.S. could impact sales. So, unless Ambarella clearly discloses its sales figures from GoPro and shows that it can survive without action cameras, its stock will remain tightly chained to GoPro’s.


AMBA is a wait-and-see. I am waiting on one of two events. A strong earnings report decoupling it from the fate of GPRO or a move above the 200 day-moving-average which is currently at $75 and falling.

The stock is almost unchanged in pre-market this AM. Very good sign as there are no sellers at $36.

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AMBA +9% today, with GPRO down -12%…looks like the decoupling process may have started.

I think people get very jittery when it comes to holding camera related stocks since the Eastman Kodak decline is a well documented case in business schools globally.

That view is view short-sighted in my opinion, when you consider some of the technologies that AMBA is bringing to the forefront.