Maybe they have an edge?
Once again, Seeking Alpha disseminates information from a short biased research group, eagerly declaring AMBA will miss earnings, which will, in part, send shares plummeting to new lows. Ironically, the name of this group is Prescience.
How convenient.
Shares of AMBA are weak this morning due to this note:
We believe Ambarella Inc (NASDAQ:AMBA) (“AMBA” or “the company”) will miss the Street’s FQ3’14 consensus estimates, resulting in downward revisions to FY’14 and FY’15 estimates. Our channel checks with Ambarella’s largest customer Chicony (TSEC: 2385), checks within AMBA’s supply chain, and conversations with various analysts indicate that AMBA’s fastest growing business segment, selling SoCs to be embedded in GoPro wearable cameras, has significantly weakened.
Based on conversations with the sell-side, current Street estimates for 20% QoQ revenue growth in FQ3’14 are based on extrapolation of FQ3’13 results; FQ3’13 was a boom time for AMBA on the back of a successful GoPro Hero3 product launch. Revenue from GoPro wearable camera SoCs have grown from 4% to 42% of AMBA’s consolidated sales in the year spanning FQ1’13 to FQ1’14. Our research, however, indicates that growth in Hero3 sales is currently dwindling and that a GoPro Hero3 refresh cycle will not take place in 2H’2013. While we do expect AMBA’s non-GoPro revenue to grow, it is unlikely to provide the kind of growth needed to offset the potential revenue shortfall from the GoPro-related business. Against the backdrop of Ambarella Inc (NASDAQ:AMBA)’s non-GoPro revenue having grown between -25% and +19% QoQ (and actually declining sequentially in three out of the four quarters), current Street estimates appear unachievable.
In a world filled with smoke and mirrors, my initial reaction is to discard this invaluable piece of research as pure biased rubbish. I suppose they already have their short position in place and would like to see AMBA tank, ahead of earnings.
This much is certain: should AMBA exceed earnings expectations this quarter, someone will need to head over to Prescience and punch their analyst in the collar bone.
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Yes read the full report. It appears they want to short into earnings than go long as they appear to be bullish for the LT. This type of shit is criminal IMO.
Jules instead of sittin here doin the Miley Cyrus, why don’t u tell me your top holding, that would be great, thanks
HDK
Besides your mother’s tit my top holding is MFC.
LOL
good stuff boys, keep up the lolsies
Lol, that was a thirst trap, u really need a bottle of Fiji pronto
HDK