AMBA - Ambarella: More Talk Than Performance
2024-03-24 04:07:40 ET
Summary
- Ambarella has been investing in AI applications, resulting in growing losses and disappointing financial results.
- The company's stock has lost about three-quarters of its value since the peak, despite the booming AI market.
- Ambarella continues to face challenges, with operating losses ballooning to $155 million in 2024 and sales down a third.
About a year ago I called for taking chips off the table in the case of Ambarella ( AMBA ) , as the risk-reward no longer looked too compelling. The company has started to post serious losses and has been investing for years to grab the AI opportunity, but so far this has only resulted in growing losses amidst stable, or even falling topline results....
Ambarella: More Talk Than Performance