Ambarella Inc (NASDAQ: AMBA) was having a relatively rough start to the trading session this morning, spending most of the first hour of the day in the red. However, that all changed minutes ago as a rumor surrounding the company started to break. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:34), AMBA is trading at $51.59 per share after a gain of $0.57 per share (1.12%) thus far today.
AMBA Spikes On Rumors
As mentioned above, Ambarella wasn't off to the best of starts in the market today. However, that all changed minutes ago as a rumor surrounding the company started to break. The rumor suggests that the company is in the process of exploring a sale. However, in these cases, companies usually hire bankers to assist in this process, and we have not heard anything about anyone being hired to assist.
With that said, now is the perfect time to remind readers that rumors are nothing new in the market. In fact, they happen quite regularly. Unfortunately, however, most of the time a rumor takes place, it is not based in fact. In this particular case, while AMBA may be exploring a sale some day, we don't believe that today is that day. The bottom line is that the rumor is overwhelmingly vague and tracking down the source of the rumor is nearly impossible.
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on AMBA. In particular, we're interested in following the story to see if the company is indeed exploring a sale. While we don't believe that this is the case, the truth is that anything can happen in the market. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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