Is Ambarella Stock a Good Investment?

Ambarella Investment Advice

AMBA

To provide specific investment advice or recommendations on Ambarella stock, we recommend investors consider the following general factors when evaluating Ambarella. This will help you to make an informed decision on whether to include Ambarella in one of your diversified portfolios:

Examine Ambarella's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Ambarella's leadership team and their track record. Good management can help Ambarella navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact Ambarella's business and its evolving consumer preferences.
Compare Ambarella's performance and market position to its competitors. Analyze how Ambarella is positioned in terms of product offerings, innovation, and market share.
Check if Ambarella pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Ambarella's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Ambarella stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ambarella is a good investment.

Sell

Buy

Strong Buy

Macroaxis provides unbiased investment recommendation on Ambarella that should be used to complement current analysts and expert consensus on Ambarella. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Ambarella is not overpriced, please confirm all Ambarella fundamentals, including its profit margin, shares owned by insiders, price to book, as well as the relationship between the current valuation and number of shares shorted . Given that Ambarella has a price to earning of 202.70 X, we suggest you to validate Ambarella market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Solid	Details
Volatility	Very steady	Details
Hype Condition	Under hyped	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Actively responds to the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Ambarella Stock

Researching Ambarella's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 87.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings (P/E) ratio of 202.7. Ambarella recorded a loss per share of 2.49. The entity had not issued any dividends in recent years.

To determine if Ambarella is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Ambarella's research are outlined below:

	Ambarella appears to be risky and price may revert if volatility continues
	The company reported the previous year's revenue of 284.87 M. Net Loss for the year was (117.13 M) with profit before overhead, payroll, taxes, and interest of 190.71 M.
	Ambarella has a strong financial position based on the latest SEC filings
	Over 87.0% of the company shares are held by institutions such as insurance companies
	Latest headline from news.google.com: Stifel reiterates Buy rating on Ambarella stock with 80 price target - Investing.com Nigeria

Ambarella Quarterly Liabilities And Stockholders Equity

701.92 Million

Ambarella uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Ambarella. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Ambarella's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	27th of February 2024 Upcoming Quarterly Report	View
	4th of June 2024 Next Financial Report	View
	31st of January 2024 Next Fiscal Quarter End	View
	27th of February 2024 Next Fiscal Year End	View
	31st of October 2023 Last Quarter Report	View
	31st of January 2023 Last Financial Announcement	View

Earnings surprises can significantly impact Ambarella's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Ambarella's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2025-05-29	2025-04-30	0.04	0.07	0.03	75
2023-08-29	2023-07-31	-0.18	-0.15	0.03	16
2020-03-03	2020-01-31	0.11	0.14	0.03	27
2022-12-01	2022-10-31	0.2	0.24	0.04	20
2020-11-23	2020-10-31	0.05	0.09	0.04	80
2018-06-05	2018-04-30	0.09	0.13	0.04	44
2014-06-03	2014-04-30	0.21	0.25	0.04	19
2024-05-30	2024-04-30	-0.31	-0.26	0.05	16

Ambarella Target Price Consensus

Ambarella target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Ambarella's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.

Buy

Most Ambarella analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Ambarella stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Ambarella, talking to its executives and customers, or listening to those companies' conference calls.

Macroaxis Advice Exposure Valuation

Ambarella Target Price Projection

Ambarella's current and average target prices are 69.38 and 76.47, respectively. The current price of Ambarella is the price at which Ambarella is currently trading. On the other hand, Ambarella's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Ambarella Market Quote on 20th of July 2025

Low Price	69.34	Odds
High Price	71.14	Odds

69.38 Target Price

Analyst Consensus On Ambarella Target Price

Low Estimate	69.58	Odds
High Estimate	84.88	Odds

76.4667

Historical

Lowest Forecast 69.58

Target Price 76.47

Highest Forecast 84.88

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Ambarella and the information provided on this page.

Ambarella Analyst Ratings

Ambarella's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Ambarella stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Ambarella's financials, market performance, and future outlook by experienced professionals. Ambarella's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Ambarella's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Ambarella is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Ambarella backward and forwards among themselves. Ambarella's institutional investor refers to the entity that pools money to purchase Ambarella's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Jacobs Levy Equity Management, Inc.	2025-03-31	647.8 K
Nuveen, Llc	2025-03-31	639.2 K
Nuveen Asset Management, Llc	2024-12-31	603.5 K
Legal & General Group Plc	2025-03-31	580.6 K
Bank Of America Corp	2025-03-31	575.5 K
Oberweis Asset Management Inc	2025-03-31	568.8 K
Dimensional Fund Advisors, Inc.	2025-03-31	543.7 K
Stephens Inv Mgmt Group Llc	2025-03-31	499.8 K
Pinnacle Associates Inc	2025-03-31	496.1 K
Vanguard Group Inc	2025-03-31	4.8 M
Blackrock Inc	2025-03-31	3.8 M

Note, although Ambarella's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Ambarella's market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 2.94 B.

Market Cap

1.15 Billion

Ambarella's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.35)	(0.33)
Return On Capital Employed	(0.22)	(0.21)
Return On Assets	(0.17)	(0.16)
Return On Equity	(0.21)	(0.22)

The company has Profit Margin (PM) of (0.33) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.3) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.3.

Determining Ambarella's profitability involves analyzing its financial statements and using various financial metrics to determine if Ambarella is a good buy. For example, gross profit margin measures Ambarella's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Ambarella's profitability and make more informed investment decisions.

Ambarella's Earnings Breakdown by Geography

Please note, the presentation of Ambarella's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Ambarella's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Ambarella's management manipulating its earnings.

Evaluate Ambarella's management efficiency

Ambarella has return on total asset (ROA) of (0.1054) % which means that it has lost $0.1054 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.1835) %, meaning that it created substantial loss on money invested by shareholders. Ambarella's management efficiency ratios could be used to measure how well Ambarella manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to -0.33. The current year's Return On Capital Employed is expected to grow to -0.21. At present, Ambarella's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Intangible Assets is expected to grow to about 49.6 M, whereas Total Assets are forecasted to decline to about 450.4 M.

	Last Reported	Projected for Next Year
Book Value Per Share	13.59	7.97
Tangible Book Value Per Share	5.10	5.78
Enterprise Value Over EBITDA	(30.13)	(31.64)
Price Book Value Ratio	5.64	5.93
Enterprise Value Multiple	(30.13)	(31.64)
Price Fair Value	5.64	5.93
Enterprise Value	1.8 B	1 B

Ambarella's management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.

Beta

Basic technical analysis of Ambarella Stock

As of the 20th of July, Ambarella shows the risk adjusted performance of 0.1768, and Mean Deviation of 2.55. Ambarella technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Ambarella's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Ambarella insiders, such as employees or executives, is commonly permitted as long as it does not rely on Ambarella's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Ambarella insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Wang Feng-ming over a month ago Disposition of 4677 shares by Wang Feng-ming of Ambarella at 52.26 subject to Rule 16b-3
		John Young over two months ago Disposition of 21 shares by John Young of Ambarella at 53.54 subject to Rule 16b-3
		Paisley Christopher B over three months ago Disposition of 500 shares by Paisley Christopher B of Ambarella at 55.5 subject to Rule 16b-3
		Ju Chi-hong over three months ago Acquisition by Ju Chi-hong of 12388 shares of Ambarella subject to Rule 16b-3
		Wang Feng-ming over three months ago Acquisition by Wang Feng-ming of 11024 shares of Ambarella subject to Rule 16b-3
		Chan Lee over six months ago Disposition of 1000 shares by Chan Lee of Ambarella at 77.21 subject to Rule 16b-3
		Chan Lee over six months ago Disposition of 1000 shares by Chan Lee of Ambarella at 75.68 subject to Rule 16b-3
		Chan Lee over six months ago Disposition of 1000 shares by Chan Lee of Ambarella at 74.12 subject to Rule 16b-3
		Hon Hsiao-wuen over six months ago Disposition of 377 shares by Hon Hsiao-wuen of Ambarella at 74.1484 subject to Rule 16b-3
		Wang Feng-ming over six months ago Disposition of 40000 shares by Wang Feng-ming of Ambarella subject to Rule 16b-3
		Christopher Day over six months ago Disposition of 2904 shares by Christopher Day of Ambarella at 58.0 subject to Rule 16b-3
		Wang Feng-ming over six months ago Disposition of 4382 shares by Wang Feng-ming of Ambarella at 38.92 subject to Rule 16b-3

Ambarella's Outstanding Corporate Bonds

Ambarella issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Ambarella uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Ambarella bonds can be classified according to their maturity, which is the date when Ambarella has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	MPLX LP 4125 Corp Bond US55336VAK61	View
	MPLX LP 52 Corp Bond US55336VAL45	View
	BNP Paribas FRN Corp Bond USF1R15XK367	View
	Morgan Stanley 3971 Corp Bond US61744YAL20	View
	MGM Resorts International Corp Bond US552953CD18	View
	Valero Energy Partners Corp Bond US91914JAA07	View

View All Ambarella Corporate Bonds

Understand Ambarella's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Ambarella's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1768
	Market Risk Adjusted Performance	0.4059
	Mean Deviation	2.55
	Semi Deviation	2.98
	Downside Deviation	3.41
	Coefficient Of Variation	552.45
	Standard Deviation	4.12
	Variance	17.01
	Information Ratio	0.1469
	Jensen Alpha	0.4932
	Total Risk Alpha	0.159
	Sortino Ratio	0.1778
	Treynor Ratio	0.3959
	Maximum Drawdown	23.83
	Value At Risk	(3.42)
	Potential Upside	6.8
	Downside Variance	11.6
	Semi Variance	8.88
	Expected Short fall	(3.20)
	Skewness	1.06
	Kurtosis	10.33

	Risk Adjusted Performance	0.1768
	Market Risk Adjusted Performance	0.4059
	Mean Deviation	2.55
	Semi Deviation	2.98
	Downside Deviation	3.41
	Coefficient Of Variation	552.45
	Standard Deviation	4.12
	Variance	17.01
	Information Ratio	0.1469
	Jensen Alpha	0.4932
	Total Risk Alpha	0.159
	Sortino Ratio	0.1778
	Treynor Ratio	0.3959
	Maximum Drawdown	23.83
	Value At Risk	(3.42)
	Potential Upside	6.8
	Downside Variance	11.6
	Semi Variance	8.88
	Expected Short fall	(3.20)
	Skewness	1.06
	Kurtosis	10.33

Consider Ambarella's intraday indicators

Ambarella intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Ambarella stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0253
	Daily Balance Of Power	(0.61)
	Rate Of Daily Change	0.98
	Day Median Price	70.24
	Day Typical Price	69.95
	Market Facilitation Index	1.8
	Price Action Indicator	(1.41)
	Period Momentum Indicator	(1.10)
	Relative Strength Index	62.49

Ambarella Corporate Filings

F4	27th of June 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
8K	6th of June 2025 Report filed with the SEC to announce major events that shareholders should know about	View Verify
10Q	3rd of June 2025 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify
	2nd of June 2025 Other Reports	View Verify

Ambarella time-series forecasting models is one of many Ambarella's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Ambarella's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Ambarella Stock media impact

There is far too much social signal, news, headlines, and media speculation about Ambarella that are available to investors today. This information is accessible both publicly - through Ambarella's media outlets and privately, via word of mouth or internal channels. However, regardless of the source, the sheer volume of Ambarella-related data is difficult to distill into actionable insights, especially for investors who are not well-versed in the rapidly evolving tools and techniques of investment management.

A primary focus of Ambarella news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Ambarella relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Ambarella's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Ambarella alpha.

Ambarella Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Ambarella can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Ambarella Historical Investor Sentiment

Investor biases related to Ambarella's public news can be used to forecast risks associated with an investment in Ambarella. The trend in average sentiment can be used to explain how an investor holding Ambarella can time the market purely based on public headlines and social activities around Ambarella. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Ambarella's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Ambarella and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Ambarella news discussions. The higher the estimate score, the more favorable the investor's outlook on Ambarella.

Ambarella Corporate Management

Christopher Day	VP of Marketing and Bus. Devel.	Profile
John Young	Chief Officer	Profile
Amee OrozcoGuiriba	Vice Resources	Profile
Chan Lee	Chief Officer	Profile
Michael Morehead	General Secretary	Profile
ChiHong Ju	Senior Centers	Profile

Already Invested in Ambarella?

The danger of trading Ambarella is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Ambarella is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Ambarella. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Ambarella is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether Ambarella offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ambarella's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ambarella Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ambarella Stock: