Ambarella has just released their numbers for the current quarter. Let’s just say that it was not good for them. The company revealed that their revenue for the current quarter came in between $65 and $67.5 million. However, the problem is Wall Street revealed that their expectations were $76 million. $65 million is quite a lot of money, but $11 million short is not going to cut it.
AMBARELLA NEEDS MORE THAN JUST GOPRO
Ambarella is a technology company that produces video compression and image processing products for various companies. The biggest company they make products for is GoPro. They power the GoPro cameras with their HD video cameras and HD video broadcasting technology. However, the time may be now for them to make products for a bigger company due to these latest numbers from them. Right now, they are depending on the GoPro cameras too much.
WILL AMBARELLA’S SHARES GO UP?
If they branch out and partner with another company, then they might be able to get their stock shares back up. However, if they stay where they are there is no reason to believe that their shares will increase. As we speak, their shares are down 3% and their shares have been lowered by around $4 per and unless they prove that they can depend on more than one company it might not change.
WILL AMBARELLA LOOK THE OTHER WAY?
It will be very interesting to see in the future if another company decides to have Ambarella make their video and image products. There is no need for them to just completely drop GoPro, but they might need to consider expanding past them. Right now, they are simply known as the company that makes products for GoPro. The bottom line is, this needs to change or more success will not happen.
Ambarella GoPro is a big Disappointment
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