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.