Ambarella, Inc. (NASDAQ: AMBA) a semiconductor processing solutions company has posted their Q1 report for the fiscal year 2018. Although the company has put out favorable numbers, with revenue up 12.2% from the first quarter of 2017 and a favorable EPS of $0.07 compared to $0.05 for the previous year, a slightly weaker than anticipate guidance for this quarter has halted investors. The company released reports of expected revenue to be between $69 and $72 million, with Street expectations for revenue being listed at $72.35 million.
Since the report came out the stock has fallen over 10%.
However, the technology index is posting consistent growth, the economy is looking healthy and all the signs point up so it is not a wild idea that Ambarella will regain market share and turn its valuation around. "While our current markets continue to expand, we believe the combination of video with computer vision technology will be the real driver of new opportunities in both our current markets as well as emerging markets such as OEM automotive and robotics.” Said Fermi Wang, President and CEO of Ambarella Inc. There is also the possibility that expectations were undervalued as the company wants to beat their guidance and show favorable growth. Although that is yet to be seen Ambarella should be an easy hold.