Ambarella Stock Performance

AMBA Stock  USD 67.75  0.22  0.32%   
On a scale of 0 to 100, Ambarella holds a performance score of 12. The firm shows a Beta (market volatility) of 1.58, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Ambarella will likely underperform. Please check Ambarella's information ratio, treynor ratio, and the relationship between the downside deviation and total risk alpha , to make a quick decision on whether Ambarella's price patterns will revert.

Risk-Adjusted Performance

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Compared to the overall equity markets, risk-adjusted returns on investments in Ambarella are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental drivers, Ambarella sustained solid returns over the last few months and may actually be approaching a breakup point. ...more
Begin Period Cash Flow144.9 M
Total Cashflows From Investing Activities-40.5 M

Ambarella Relative Risk vs. Return Landscape

If you would invest  4,757  in Ambarella on April 25, 2025 and sell it today you would earn a total of  2,018  from holding Ambarella or generate 42.42% return on investment over 90 days. Ambarella is currently generating 0.6498% in daily expected returns and assumes 4.0317% risk (volatility on return distribution) over the 90 days horizon. In different words, 36% of stocks are less volatile than Ambarella, and 87% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
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Given the investment horizon of 90 days Ambarella is expected to generate 5.16 times more return on investment than the market. However, the company is 5.16 times more volatile than its market benchmark. It trades about 0.16 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.23 per unit of risk.

Ambarella Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Ambarella's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Ambarella, and traders can use it to determine the average amount a Ambarella's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.1612

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Estimated Market Risk

 4.03
  actual daily
36
64% of assets are more volatile

Expected Return

 0.65
  actual daily
13
87% of assets have higher returns

Risk-Adjusted Return

 0.16
  actual daily
12
88% of assets perform better
Based on monthly moving average Ambarella is performing at about 12% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Ambarella by adding it to a well-diversified portfolio.

Ambarella Fundamentals Growth

Ambarella Stock prices reflect investors' perceptions of the future prospects and financial health of Ambarella, and Ambarella fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Ambarella Stock performance.

About Ambarella Performance

By analyzing Ambarella's fundamental ratios, stakeholders can gain valuable insights into Ambarella's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Ambarella has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Ambarella has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Ambarella, Inc. develops semiconductor solutions for video that enable high-definition and ultra HD compression, image processing, and deep neural network processing worldwide. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California. Ambarella operates under Semiconductor Equipment Materials classification in the United States and is traded on NASDAQ Exchange. It employs 899 people.

Things to note about Ambarella performance evaluation

Checking the ongoing alerts about Ambarella for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Ambarella help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
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.
Over 87.0% of the company shares are held by institutions such as insurance companies
Evaluating Ambarella's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate Ambarella's stock performance include:
  • Analyzing Ambarella's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Ambarella's stock is overvalued or undervalued compared to its peers.
  • Examining Ambarella's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating Ambarella's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Ambarella's management team can help you assess the Company's leadership.
  • Pay attention to analyst opinions and ratings of Ambarella's stock. These opinions can provide insight into Ambarella's potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating Ambarella's stock performance is not an exact science, and many factors can impact Ambarella's stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.

Complementary Tools for Ambarella Stock analysis

When running Ambarella's price analysis, check to measure Ambarella's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ambarella is operating at the current time. Most of Ambarella's value examination focuses on studying past and present price action to predict the probability of Ambarella's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ambarella's price. Additionally, you may evaluate how the addition of Ambarella to your portfolios can decrease your overall portfolio volatility.
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