Tag Archives: gpro

Chipmaker Earnings Surprises Send Ambarella, Broadcom Opposite Ways

Ambarella ( AMBA ) stock was down nearly 6% in after-hours trading Thursday, after the maker of image-processing chips issued disappointing revenue guidance while topping views for its fourth quarter. Apple ( AAPL ) supplier and IBD 50 list growth stock  Broadcom ( AVGO ) was up more than 7%, however, after its quarterly report beat estimates  despite slowing iPhone sales. Ambarella, which rose 2.2% in Thursday’s regular session, is a supplier to action-camera maker GoPro ( GPRO ). “During the fourth quarter we saw strong sales from professional IP security, automotive aftermarket, home monitoring and flying camera markets,” Ambarella CEO Fermi Wang said in the company’s earnings release. “This was largely offset, however, by a continued decline in the wearable sports camera market.” Ambarella is working to diversify its end markets and customer base. For its Q4 ended Jan. 31, Ambarella said revenue rose 5% from the year-earlier quarter to $68 million, and earnings per share fell 5.9% to 64 cents. That beat the view of analysts polled by Thomson Reuters, who on average expected EPS of 48 cents on revenue of $66 million. But Ambarella gave lagging guidance for its fiscal Q1 2017. It sees revenue of $55 million to $57 million and net income of $8 million to $10 million. Analysts polled by Thomson Reuters have been expecting revenue of $62 million, and net income of just over $14 million. Ambarella gets an IBD Composite Rating of 74 and Broadcom a 98 out of a possible 99, factoring in a variety of metrics such as earnings growth and stock-price gains. Several high-rated chipmakers have been approaching buy zones lately with the market returned to an uptrend, including the two chipmakers on the IBD 50 list: Broadcom and Nvidia ( NVDA ), which makes chips for computation-intensive processes including graphics, gaming and self-driving cars. Broadcom ended Thursday’s regular trading session about 9% under a buy point from a cup base. RELATED: Can IBD 50’s Broadcom Drive Chip Stocks?

Will Tesla Suffer Same Fate As Other Citron Shorts GPRO, AMBA, MBLY?

Loading the player… Tesla Motors ( TSLA ) took a hit after short seller Citron Research sent out a tweet Tuesday that it’s shorting the stock. And with other notable Citron shorts trading well off of their highs, including GoPro ( GPRO ), Ambarella ( AMBA ) and Mobileye ( MBLY ), the call could potentially be a bad sign for the electric-car maker. Citron said on Twitter ( TWTR ) that Tesla has “supply AND demand problems” and that the “news flow all around does not look good” for the stock. The short seller sees the stock hitting as low as 100 by the end of the year. It’s currently trading around 185. Tesla stock reversed lower Tuesday on the news, falling 2.9% after hitting resistance at its downward-sloping 50-day line for a second straight session. Tesla dipped 0.3% on the stock market today  in quick turnover. The stock is trading 35% below its July high, reached in a now-failed breakout attempt from a cup-with-handle base. The stock has trended lower since then as analysts have voiced concerns about the production of Tesla’s new models and their demand. Meanwhile, GoPro is trading 79% below its 52-week high. Shares were briefly able to hold above their 50-day and 200-day moving averages last summer, but the stock entered a steep decline soon after. GoPro shot up 11% Wednesday after announcing it’s buying two video editing mobile apps. GoPro chip supplier Ambarella has moved somewhat in tandem with the action camera maker. It’s trading 65% below its all-time high, which it reached last July after initial commentary from Citron hit the stock about a month earlier. Shares are currently trying to find support at their 50-day line as they fell 2.4% Wednesday. And Mobileye, a Tesla partner, is also trying to hold above its downward-sloping 50-day line, trading down a fraction after losing as much as 4% intraday. It’s trading about 48% below its August high. In December, Citron called Mobileye its 2016 short of the year.

GoPro Bucks Up Editing Software With App Purchases

Action camera maker GoPro ( GPRO ) today moved to fill a deficiency in its software skills by agreeing to buy two leading mobile-video editing apps, Replay and Splice. With the acquisitions, GoPro hopes to accelerate its ability to deliver convenient and powerful mobile video-editing tools to GoPro customers and smartphone users. Both apps are now available for Apple iOS, with Android releases planned for later this year, GoPro said in a press release . Replay, developed by Paris-based Stupeflix, allows users to quickly select video clips and photos and automatically combines them into a single video — complete with transition effects, graphics and synchronized music. Splice, developed by Vemory in Austin, Texas, is a mobile editor that allows users to manually create customized edits with advanced features normally found on desktop-editing software, but with the speed and efficiency of a mobile-app interface. Oppenheimer analyst Andrew Uerkwitz said the acquisition announcements were welcome news. “Finally,” Uerkwitz said in a research report Tuesday. ““We’ve long argued that one of the primary obstacles for GoPro to become more mainstream has been its poor software interface. It simply takes too much time to upload, edit, and share a video using a GoPro device. And quite frankly, users’ attention spans are such that we believe most consumers would rather do everything from a smartphone.” The acquisitions of Replay and Splice should “go a long way in correcting the bottlenecks consumers currently encounter using a GoPro device,” he said. Uerkwitz rates GoPro stock as perform, saying he’s on the sidelines until GoPro catches up with software improvements, 360-degree video and drones. GoPro stock was up more than 1% in afternoon trading on the stock market today , near 12, but it’s been hammered by falling revenue and disappointing holiday sales, as analysts fear its action-camera market is saturated until new-generation products spark upgrades. GoPro stock has plunged 70% in the past 12 months. RELATED: Action Camera Maker GoPro Mauled By Bears After Q4 Earnings