The Ridiculousness of Ambarella

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Targets:  12 month price -$60 / 18 month – $40

Ridiculousness

It seems like yesterday that Wall Street was frothing at the mouth over 3D printing stocks.  These high flyers were not valued based on their financials but rather as a beneficiary of being anointed as “the new new”.  Citron Research was critical of the space and published pieces on 3 of these bubble-levitated 3D printing stocks.  It is 18 months later and most of them languish 80% off their highs.

So Wall Street has gone searching for another “new new” in the technology sector and has found one in Ambarella (NASDAQ:AMBA), whose parabolic frenzy has now launched it into a realm that can’t possibly be supported by reality.  Citron points out how how far this niche chip designer's stock has separated from reality. 

 

For an unpretentious episode of investing "reality TV", click here.