Why Ambarella Tumbled More Than 19% Today
Shares of digital camera technology company Ambarella (NASDAQ: AMBA) ended Wednesday down to the tune of 19.3%, bringing the stock's two-day rout to a total of more than 23%. The broad market's weakness caused most of the damage, although Ambarella shares began the new week as well as the new trading year highly vulnerable to such a setback.
Don't look for a specific catalyst for the sell-off. You won't find one. Indeed, Ambarella's unveiling of a new artificial intelligence-powered image processor on Wednesday morning arguably should have prodded the stock upward again after Tuesday's lull. Investors have been quick to bid the stock up on even the most modest of news since the middle of last year.
Rather, look to the market's overall weakness on Wednesday for an explanation of Ambarella's setback. The release of the minutes from the most recent Federal Reserve governors meeting suggests the central bank is turning increasingly hawkish, now with three rate hikes anticipated for this year to be followed by five more by the end of 2024.
Source Fool.com
