Why Ambarella, Qiagen, and SmileDirectClub Slumped Today
Wall Street took a hit on Tuesday, with major benchmarks generally seeing losses of 1% to 1.7%. The latest news on the trade front signaled worsening relations between the U.S. and China, and investors seem increasingly uncertain that the two nations will be able to resolve their differences at any point in the near future. That hit some stocks directly, including several Chinese stocks, but others lost ground due to their own individual problems. Ambarella (NASDAQ: AMBA), Qiagen (NYSE: QGEN), and SmileDirectClub (NASDAQ: SDC) were among the worst performers. Here's why they did so poorly.
Shares of Ambarella fell over 9% after the maker of video camera sensor chips became the latest casualty of the trade conflict. Ambarella provides its chips to several Chinese companies, and two major customers, Dahua and Hikvision, were included among the more than two dozen companies that made it onto the U.S. blacklist. Analysts quickly noted that Ambarella might still be able to make shipments through non-U.S. entities, but those following the video chip maker are concerned that taking away key parts of its business at a critical time in the industry could prove damaging to its long-term prospects.
Image source: Ambarella.
Source Fool.com
