Ambarella Inc. – Stock on the Rise

Medium cap stock, Ambarella Inc., (NASDAQ: AMBA), continues to outperform the markets at an unparalleled rate, despite the worries over the Fed rate hikes, and Greece’s economy. Currently trading $122.23 USD, and with a market cap of $3.69 Billion, Ambarella Inc. is in the growth stage.

Stock Overview

  • Ambarella: YTD, 140.99%, 52 week, 356.08%
  • NASDAQ: YTD, 6.94%, 52 week, 17.50%
Google Finance

About Ambrella Inc.

Founded in 2004, Ambarella Inc. is a developer of high definition video processing solutions. Through it’s innovative; market-leading products for camera chips, Ambarella Inc. has won several awards, such as the 2012 Most Respected Private Semiconductor Company. Over the years, Ambarella Inc. has developed a strong clientele list, which consists of GoPro Inc. (NASDAQ: GPRO).

What has contributed to the success?

How did Ambarella Inc. manage to outperform each year since it’s IPO? Recall the article, To Buy or Not to Buy, which states that companies with strong fundamentals, such as growing EPS, and cash flow are typically a stable investment.  Ambarella Inc. is in a strong industry and supplies to growing companies, contributing to the 52-week growth of 356.08%.

Fourth Quarter and Fiscal 2015 Financial Results Highlights

  • Fourth Quarter Revenue: 61.9% increase year over year
  • 31% increase in net income, twelve months ending January 31st, 2015 (GAAP Net Income – Diluted)
  • 58% increase in net income, three months ending January 31st, 2015 (GAAP Net Income – Diluted)
  • Total cash, cash equivalents and market securities on hand: 45% increase, twelve months ending January 31st, 2015

Overview

Yes, Ambarella Inc. is a great stock to invest, strong fundamentals, and a clientele list that consist of growing companies. But don’t go crazy and put all of your eggs in one basket with this stock. Remember to stick to one of the most important investing principles – diversifying.  Ambarella Inc. has developed a strong track record in the past, thus contributing to its growth, and outperforming the markets.


Writer: Jelani Smith

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