Ambarella's Growth Stalls: Time To Sell?
Investors were bracing for bad news when Ambarella (NASDAQ: AMBA) reported its fiscal second-quarter results, and that's exactly what they received. The computer vision tech specialist reported nearly flat sales through late July and expanding losses thanks to major supply chain challenges.
Some of these pressures are finally easing, which means Ambarella could see some improvement by late 2022. But there are some reasons to be cautious about the stock right now. Let's dive right in.
Ambarella's Q2 sales rose 2%, marking a sharp slowdown from the prior quarter's 29% spike. It was jarring to see a growth stock's revenue barely budge from the prior year's $79 million. Most of that slowdown can be pinned on the demand and supply chain challenges associated with widespread pandemic shutdowns in China.
Source Fool.com
