Ambarella stock drops 20% on guidance miss; TD Cowen downgrades after ‘another painful reset’ By Investing.com

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<span>© Reuters. Ambarella drops 13% on guidance miss</span><br />
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<p>Ambarella (NASDAQ:) shares fell more than 20% in premarket Wednesday after the chipmaker its Q2 results.</p>
<p>While Q2 EPS of ($0.15) and revenue of $62.1 million (down 23% year-over-year) came in better than the consensus estimates of ($0.21) and $62.02M, respectively, Q3 guidance missed expectations.</p>
<p>For Q3/24, the company expects revenue of $50M plus or minus 4%, compared to the consensus estimate of $67.6M.</p>
<p>TD Cowen analysts downgraded the stock after “another painful reset.” Their new rating is Market Perform with a price target lowered by $25 to $65 per share.</p>
<p>“Another hard expectation cut as customer inventory burn accelerates, leaving the company with little visibility in the near (and intermediate) term. With core video processing impairing the P&amp;L and strategic revenue from L2+ ADAS and LLM still &gt;2 years out (at least), we step aside and move to Market Perform,” they wrote in a downgrade report.</p>
<p>Roth MKM analysts added that “AMBA’s near-term outlook remains challenging as customers aggressively work down inventory, particularly in China where end demand remains relatively soft.” They cut the price target to $60 per share.</p>
<p>(Additional reporting by Senad Karaahmetovic)</p>
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<br /><a href="https://www.investing.com/news/stock-market-news/ambarella-drops-13-on-guidance-miss-432SI-3163667">Source link </a></p><p>The post <a href="https://forextraderhub.com/ambarella-stock-drops-20-on-guidance-miss-td-cowen-downgrades-after-another-painful-reset-by-investing-com.html">Ambarella stock drops 20% on guidance miss; TD Cowen downgrades after ‘another painful reset’ By Investing.com</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>