Ambarella jumps after smaller-than-expected Q4 loss

Ambarella

28/02/2024 14:48

** Ambarella's  AMBA.O  stock gaps up 12.8% to $65.39 early
Weds after chipmaker's qtrly loss came in less than Wall Street
expected
    ** AMBA has pared gains significantly and last up 2.6% at
$59.48
    ** Co, which develops chips for security cameras,
automotives and artificial intelligence (AI) inference, late
Tues posted Q4 loss of 24 cents/sh vs LSEG consensus view of 33
cents/sh loss
    ** Rev in Q4 declined 38% yr/yr to $51.6 mln, matching avg
estimate
    ** For current qtr, co expects rev of $52-$56 mln
    ** In-line print/guide an encouraging sign of stabilization,
showing AMBA past the trough, TD Cowen says in note to clients,
adding co's "AI strategy is starting to see early momentum"
    ** Several brokerages hike PTs in reaction to the report,
including Morgan Stanley going to $73 from $67, Stifel to $75
from $70 and Susquehanna to $80 from $70
    ** With move on the session, AMBA down ~3% YTD and has lost
nearly 40% over the past 12 months

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))