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ING Group NV ADR ING Stock News

ING Group NV (ADR) (NYSE: ING)

ING Group is having an incredibly rough time in the pre-market trading hours, and for good reason. The company disclosed a criminal probe into their activities. Shortly after the disclosure, our partners at Trade Ideas alerted us to the declines. Currently (8:33), ING is trading at $14.79 per share after a loss of $0.68 per share or 4.40% thus far today.




What We’ll Be Watching For Ahead

CNA Finance will be watching ING Group incredibly closely moving forward. At the moment, there are no details as to why the criminal probe is taking place. However, there are rumors of substantial repercussions to come. Nonetheless, we’ll continue to watch the story closely and bring the news to you as it breaks!

What Do You Think?

Where do you think ING is headed moving forward? Join the discussion in the comments below!

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Novavax NVAX Stock News

Novavax, Inc. (NASDAQ: NVAX)

Novavax is having a rough day in the market today, and for good reason. The company reported its earnings for the first quarter, missing expectations and causing concerns among investors. Today, we’ll talk about what we saw from earnings, how the market is reacting to the news, and what we can expect to see from NVAX moving forward. So, let’s get right to it…

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NVAX Reports Earnings

As mentioned above, Novavax reported its earnings for the first quarter after the closing bell yesterday. Unfortunately, the company missed expectations, leading to declines in the value of the stock. Here’s what we saw from the earnings report:

  • Earnings – In terms of earnings per share, NVAX left much to be desired. During the first quarter, analysts expected that the company would generate a loss of $0.27 per share. However, the company actually reported a loss that was $0.02 per share worse than expected, coming in at $0.29 per share.
  • Revenue – While earnings missed expectations, the big story here was revenue. During the first quarter, analysts expected that NVAX would generate revenue in the amount of $10.39 million. However, the company announced that its revenue came in at less than half of what analysts were expecting to see. In the quarter, the company generated total revenue in the amount of $4.2 million.

How The Market Reacted To The News

As investors, we know that the news moves the market. Any time there is positive news released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company. On the other hand, when negative news is produced, we can expect to see declines. Unfortunately, the news surrounding Novavax definitely wasn’t positive. Not only did the company slightly miss earnings projections, revenue came in far below what analysts were expecting to see. As a result, we’re seeing declines on the stock during today’s trading session. Currently (10:50), NVAX is trading at $4.61 per share after a loss of $0.17 per share or 3.56% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively mixed opinion of what we can expect to see from NVAX. In the short term, we’re likely to see more declines as disappointing quarterly results continue to be a cause for concern among investors. However, in the long run, I do believe that the company will likely pull ahead. The reality is that Novavax is working on incredible vaccines that are much needed in the medical industry. While these product candidates are still in the trial phase, they are looking incredibly promising, which I believe is why the declines realized on the stock today haven’t been larger. All in all, things look tough at the moment, but in the long run, I wouldn’t be surprised to see this stock soar.

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What Do You Think?

Where do you think NVAX is headed moving forward? Let us know your opinion in the comments below!

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Facebook FB Stock News

Facebook Inc (NASDAQ: FB)

Facebook is having an incredible day in the market today. In fact, after reporting earnings for the first quarter, the company’s stock price has jumped into record territory. Today, we’ll talk about what we saw from earnings, how the market reacted to the news, and what we can expect to see from FB stock moving forward. So, let’s get right to it…

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FB Reports Strong Earnings

As mentioned above, Facebook recently reported its earnings for the most recent quarter with such strong results that the value of the stock has jumped into record territory. Here’s what we saw from the earnings report:

  • Revenue – In terms of revenue, FB produced overwhelmingly positive numbers. During the quarter, analysts expected that the company would generate revenue in the amount of $5.26 billion. However, the company actually generated revenue more than $100 million ahead of expectations, coming in at $5.38 billion.
  • Earnings – As if strong revenue wasn’t enough, FB absolutely blew away analyst expectations with regard to earnings. During the first quarter, analysts expected that the company would generate earnings in the amount of $0.62 per share. However, the company actually reported earnings in the amount of $0.77 per share.
  • Active Users – When it comes to monthly active users, Facebook saw incredible growth as well. During the quarter, the social network enjoyed a total of 1.65 million active users. That number is up 15% year-over-year. Not to mention, mobile active users climbed 21% year-over-year to 1.51 billion.

Finally, following the strong earnings, FB announced that it would be proposing the offering of a new class of stock. Here’s what the company had to say:

If the proposal is approved, we intend to issue two shares of Class C capital stock as a one-time stock dividend in respect of each outstanding share of our Class A and Class B common stock.”

How The Market Reacted To The News

As investors, we know that positive news will likely lead to growth in the value of the stock the news is associated with. Obviously, the news released by FB was overwhelmingly positive. This is leading to incredibly strong gains on the stock. In fact, investors have pushed Facebook into record territory. Currently (9:41), FB stock is trading at $120.02 per share after a gain of $11.14 per share or 10.22% thus far today.

What We Can Expect From FB Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Facebook. The reality is that the company started as a social network. However, these days, it is a way of life for tons of people. With more than a billion and a half active users, strong plans for future growth, and investments in areas outside the internet, FB is poised for strong long-term growth.

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What Do You Think?

Where do you think FB is headed moving forward and why? Let us know your opinion in the comments below!

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Apple AAPL Stock News

Apple Inc. (NASDAQ: AAPL)

Apple is literally the largest company in the world. However, following the company’s earnings release, it looks like the door is opening for another company to ease into its place. Unfortunately, the tech giant missed the mark with regard to earnings and revenue, upsetting investors and leading to declines that would shed $40 billion + off of its stock price. Today, we’ll talk about what we saw from earnings, how investors reacted to the news, and what we can expect to see from AAPL moving forward. So, let’s get right to it…

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AAPL Earnings Disappoint

As mentioned above, Apple reported earnings for the first quarter yesterday after the closing bell. Unfortunately, the results disappointed investors. Here’s what we saw:

  • Revenue – In terms of revenue, AAPL missed the mark. While analysts were expecting that the company would generate $51.97 billion in revenue for the fist quarter, the company actually reported revenue with a total of $50.56 billion, missing the mark by over a billion dollars!
  • Earnings – Unfortunately, earnings per share wasn’t much better. In the quarter, analysts expected that AAPL would generate earnings in the amount of $2.00 per share. However, the company actually reported earnings $0.10 lower than expectations at $1.90 per share.
  • iPhone Sales – As if low earnings and low revenue weren’t enough to scare investors, Apple released information with regard to iPhone sales that caused quite a bit of concern. In fact, the first quarter of 2016 was the first quarter that the company ever produced a year-over-year sales decline in the iPhone. While Tim Cook believes that the company is still in “the early innings of the iPhone”, investors are taking this as a signal that the company’s tremendous smartphone market share is likely to start declining.

Following the release of earnings, Drexel analyst Brian White made it clear that he isn’t expecting to see much more positivity out of iPhone sales. Here’s what he had to say:

As the iPhone 6-Series nears the end of this two-year cycle and the macro backdrop remains challenging, volatility in Apple’s results is to be expected…”

How The Market Reacted To The News

As investors, one of the first things we learn is that the news moves the market. Any time we see positive news surrounding a publicly traded company, we can expect to see gains in the value of the stock associated with that company as a result. Adversely, when negative news hits, we can expect to see declines. In this particular case, the news was overwhelmingly bad. Not only did AAPL miss the mark with regard to earnings and revenue, the company recorded its first year-over-year decline in iPhone sales. As a result, we’re seeing declines. Currently (10:00), AAPL stock is trading at $96.64 per share after a loss of $7.71 per share or 7.39% thus far today. This equates to a loss of more than $40 billion in the company’s value!

What We Can Expect To See Moving Forward

Moving forward, I have a relatively mixed opinion of what we can expect to see from Apple. In the short term, I am expecting that economic conditions will continue to drive sales down. At the moment, we can expect further declines as investors show their disappointment with the results released. However, in the long run, I have faith that AAPL will be able to get over this hurdle. After all, it didn’t grow to be the largest company in the world without hurdles, and it knows how to make it past rough situations.

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What Do You Think?

Where do you think AAPL is headed moving forward and why? Let us know your opinion in the comments below!

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Cree CREE Stock News

Cree, Inc. (NASDAQ: CREE)

Cree had a rough day in the market yesterday, and it seems as though the volatility is continuing through today. The declines happened for good reason. The reality is that investors are ultimately investing for growth. So, earnings is a big key. Unfortunately, the company announced yesterday that earnings for the third fiscal quarter weren’t likely to hit their mark. Today, we’ll talk about what the company is expecting to see, how the market reacted to the news and what we can expect to see from CREE moving forward. So, let’s get right to it…

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CREE Earnings Are Expected To Miss The Mark

Yesterday, Cree made a key announcement that struck fear into the minds of investors. The company is expecting to miss the mark when it comes to both revenue and earnings on their third quarter earnings release. For the quarter, the company is now expecting to report revenue in the amount of $367 million. In terms of earnings, the company is expecting to produce between a loss of $0.01 and a gain of $0.01 per diluted share on a GAAP basis and between $0.13 and $0.15 on a non-GAAP basis. Of course, these numbers are not set in stone. The figures mentioned above are subject to completion of Cree’s customary quarterly closing and review procedures. Regardless, the company is missing the mark in a big way. The reality is analysts were expecting to see revenue in the amount of $414 million with earnings per share coming in at $0.24. In a statement, Chuck Swoboda, Chairman and CEO at CREE had the following to say about the preliminary data:

The estimated revenue is below the Company’s previously targeted range of $400 million to $430 million due to lower lighting products revenue… I believe we’ve addressed the root causes that led to our recent business challenges. While it’s premature to provide specific targets at this time, the order rate in commercial lighting improved in March, and we’re optimistic that this, combined with demand for new products, will begin to drive growth in fiscal Q4.”

How The Market Reacted To The News

As investors, we know that the news moves the market. Any time there is positive news released with regard to a publicly-traded company, we can expect to see gains in the value of that company. Adversely, when negative news is reported with regard to a publicly-traded company, we can expect to see declines. Of course, announcing the probability of missing earnings and revenue expectations is overwhelmingly negative news. So naturally, we’re seeing declines in the value of the stock. Yesterday, CREE fell in a big way, and the declines are continuing in the market today. Currently (10:20), CREE is trading at $24.48 per share after a loss of $4.57 per share or 15.73% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively mixed expectation of what we can expect to see from Cree. In the short term, we are likely to see more declines on the stock as investor concerns with regard to growth continue to take control over the movement. However, in the long run, I’m expecting positivity. The CEO announced that they have found the root cause of the decline in sales, and perhaps more importantly, the numbers were up in March. With that said, I’m expecting the situation with regard to sales to improve, which will lead to gains in the value of the stock in the long run. So, watch for the bottom of the dip, it may be a good time to get involved.

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What Do You Think?

Where do you think CREE is headed and why? Let us know your opinion in the comments below.

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Oracle Corporation ORCL Stock News

Oracle Corporation (NYSE: ORCL)

Oracle Corporation is having an incredibly strong day in the market today, and for good reason. The company reported earnings yesterday after the closing bell, blowing away expectations and exciting investors. Today, we’ll take a look at what we saw from earnings, how the market reacted to the news, and what we can expect to see from ORCL moving forward. So, let’s get right to it…

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Oracle Produces Solid Earnings

As mentioned above, ORCL reported its earnings for Q3 after the closing bell yesterday as expected. However the company surprised investors, not only by blowing away earnings estimates, but also by declaring a dividend and announcing the repurchase of common stock. Here’s what we saw:

  • Earnings Per Share – In terms of earnings per share, it was expected that ORCL would generated $0.62 in the quarter. However, the company actually generated earnings in the amount of $0.64 per share, beating analyst expectations by $0.02 per share.
  • Revenue – When it comes to revenue, ORCL produced a slight miss. In the quarter, analysts expected for the company to generate revenue in the amount of $9.12 billion. However, Oracle was able to generate $9 billion even in the quarter.
  • Declaration Of Cash Dividend – On top of the strong earnings, the company also made a big declaration today. ORCL will start paying dividends in the amount of $0.15 per share. The dividend will be paid to stockholders on record as of the close of business on April 14th and will be paid to stockholders on April 28th, 2016.
  • Stock Repurchasing – Finally, ORCL showed its strength and confidence in long-term growth by announcing that the Board of Directors has authorized a large common stock repurchase plan. The company will be repurchasing up to an additional $10 billion of common stock under its existing share repurchase program in quarters to come.

How The Market Reacted To The News

As investors, we know that the news moves the market. Ultimately, there are few pieces of news that have the ability to move the market like strong earnings, dividends, and stock repurchases. ORCL happened to release all three of these at once. So, it only makes sense that we’re seeing big gains on Oracle’s stock today. Currently (11:07), the stock is trading at $40.41 per share after a gain of $1.67 per share or 4.31% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Oracle. The company, which is focused on online software, has an incredible line of products for which demand is very high. Proof of this can be seen by simply taking a look at the ORCL earnings report. Having great products is one thing, but having the ability to market those products is another. However, ORCL has an incredible team, both in management and as employees. All in all, everything is pointing to strong, long-term growth from ORCL.

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What Do You Think?

Where do you think ORCL is headed moving forward and why? Let us know your opinion in the comments below!

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MannKind MNKD Stock News

MannKind Corporation (NASDAQ: MNKD)

MannKind is having a rough day in the market today, and for good reason. The company reported earnings after the closing bell yesterday as expected. Unfortunately, the report missed all expectations, putting fear in the minds of investors and leading to big declines on the stock. Today, we’ll talk about what we saw from the earnings report, how investors reacted to the news, and what we can expect to see from MNKD moving forward. So, let’s get right to it…

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MNKD Misses Earnings Expectations

As mentioned above, MannKind reported its earnings for the fourth quarter following the closing bell yesterday. Unfortunately, the report was overwhelmingly negative. The company reported absolute zero in terms of revenue, while posting a wider loss than expected. In the quarter, analysts expected that MNKD would generate a loss of $0.05 per share. However, the company actually reported a loss of $0.66 per share. Not only did this widely miss analyst expectations, it shows a massive decline year over year. In the same quarter of 2014, the company reported a loss of only $0.09 per share. In a statement, Matthew Pfeffer, CEO of MNKD had the following to offer:

Our financial results for 2015 were not what we expected going into the year, but we are looking forward to the next twelve months with optimism and great excitement… Afrezza will soon be back under our control and we are all energized about the opportunity to launch a lean, focused commercial effort that highlights the differentiating qualities of our lead product.”

How The Market Reacted To The News

As investors, we know that the news moves the market. Any time we see positive news with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company. Adversely, when there’s negative news, we can expect to see declines. So naturally, we’re seeing declines on the value of MNKD today. The bottom line is that the overwhelmingly poor earnings report is creating a point of concern for investors, and concerned investors cause stocks to drop. Currently (11:22), MNKD is trading at $1.23 per share after a loss of $0.16 per share or 11.87% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively mixed opinion of what we can expect to see from MNKD. In the short run, chances are that the stock is going to continue on the downward path as investors continue to show their disappointment with regard to earnings. However, in the long run, I still maintain a relatively bullish opinion. My opinion on MannKind is wholly centered around the company’s lead product, Afrezza. When I first heard of Afrezza, even in trial stages, I was incredibly interested in what I was hearing. I have diabetic family members, and I can’t think of one that likes injecting themselves with insulin. Not to mention, there are many benefits to an inhaled insulin like offering it to those with a fear of needles, children, and those who work in areas without access to a public restroom. The reality is that MNKD should have no problem commercializing this treatment. While Sanofi did drag their feet and delay commercialization, they didn’t kill the chances for MNKD to be successful with this revolutionary treatment.

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What Do You Think?

Where do you think MNKD is headed and why? Let us know your opinion in the comments below!

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Valeant Pharmaceuticals VRX Stock News

Valeant Pharmaceuticals Intl Inc (NYSE: VRX)

Valeant Pharmaceuticals has been dealing with a very rough time as of late. While I would like to say the struggle is over, I don’t believe that to be the case. Don’t get me wrong, I’ve said it before and I’ll say it again, in the long run, I’m expecting to see great things out of VRX. However, I believe that tomorrow morning the company is going to hit its last hurdle before long-term growth. Today, we’ll talk about what that hurdle is, what we can expect to see in the short term, and what we can expect to see in the long-term outlook with regard to VRX.

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Valeant Pharmaceuticals Is Set To Disappoint On Earnings

VRX is expected to release its earnings report for the fourth quarter of 2015 before the market opens tomorrow. This is what I believe will be the next (and hopefully last) hurdle for VRX to get over before we can expect to see long term-growth. During the quarter, analysts have estimated that we will see $2.61 in earnings per share on revenue in the amount of $2.75 billion. If this were the case, we would see incredible year-over-year growth from in both EPS and revenue from $2.58 and $2.28 billion respectively. This would be great, but in reality, it doesn’t seem as though this is going to happen.

The truth is that in the fourth quarter, Valeant Pharmaceuticals hit a brick wall. It was in this quarter that Citron started accusing VRX of being the Enron of the pharmaceutical industry, citing their relationship with an underground pharmacy known as Philidor as the reason they have been able to manipulate investors. As a result, Valeant was forced to cancel its agreement with Philidor, their biggest customer. This undoubtedly will cost VRX a massive amount of revenue and likely cause earnings to dive! So, I’m expecting for VRX to miss earnings expectations, leading to investor fears.

What We Can Expect To See From Valeant Pharmaceuticals In The Short Term

In the short term, I have a very bearish opinion of what we can expect to see. The truth is that I think that VRX is going to dive on earnings. As investors, we know that there are few pieces of news that have the ability to move the needle in the market quite like earnings. So, with the poor earnings expectations, I’m expecting investors to react in a negative way. Therefore, tomorrow – and likely throughout the rest of the week – I’m expecting to see declines on VRX.

What We Can Expect In The Long Run

In the long run, I have an overwhelmingly bullish opinion of what we can expect to see from Valeant Pharmaceuticals. While the company has struggled as of late with regard to the Philidor issue and the fact that the CEO of the company was on medical leave for more than a month, I believe that when we talk about VRX, we’re talking about a strong company. There’s no doubt in my mind that VRX has the ability to make a comeback from the lows we’re seeing on the stock and the declines we’re likely to see tomorrow. The reality is that they are already seeing a strong recovery in prescription numbers thanks to their relationship with Walgreens. On top of that, the company has a long line of incredible products, a great management team, and perhaps most importantly, an impressive track record of success. All in all, while there is a reason to be bearish in the short run, I’m expecting to see long-term gains from Valeant Pharmaceuticals.

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What Do You Think?

Where do you think VRX is headed moving forward and why? Let us know your opinion in the comments below!

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XOMA Corp Stock News

XOMA Corp (NASDAQ: XOMA)

XOMA is having a strong day in the market today, and for good reason. The company reported its earnings for the fourth quarter of 2015 as expected yesterday after the closing bell. The earnings release was overwhelmingly positive, leading to investor excitement throughout. Today, we’ll talk about what we saw from earnings, how investors reacted to the news, and what we can expect to see from XOMA moving forward. So, let’s get right to it…

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XOMA Produces Overwhelmingly Positive Earnings

As mentioned above, XOMA is having an incredibly strong day in the market after reporting exceptional earnings after the closing bell yesterday. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, XOMA produced well ahead of expectations. In the fourth quarter analysts expected that the company would produce earnings in the amount of $0.15 per share. However, they actually reported revenue in the amount of $0.21 per share, well ahead of analyst expectations.
  • Revenue – While earnings was overwhelmingly positive, XOMA posted one of the strongest revenue beats I’ve ever seen. According to TheStreet, the company was expected to produce revenue in the amount of $4.01 million. However, in the quarter, the company actually produced revenue in the amount of $48.18 million, more than 12 times expectations!

As you can see from the data above, the earnings release was overwhelmingly positive. In a statement, the company had the following to say with regard to the incredible results from the quarter:

The increase in full-year and fourth quarter 2015 revenues was due primarily to our licensing activity in the fourth quarter, including a $37 million upfront payment from Novartis, a $5 million upfront payment from Novo Nordisk and a $3.8 million payment from Pfizer.”

The CEO of XOMA, John Varian followed up with the statement below:

The transformation we initiated in the third quarter of last year – and now have completed in less than six months – was considerable in its scale and complexity, but essential to position XOMA to deliver our promising portfolio of endocrine assets…”

How The Market Reacted To The News

As investors, we know that the news moves the market. So, it’s no surprise that news of an overwhelmingly positive earnings report from XOMA would move the needle for the stock in a big way. Currently (11:12), the stock is trading at $0.93 per share after a gain of $0.04 per share or 5.06% thus far today.

What We Can Expect To See Moving Forward

Overall, I have a relatively bullish opinion of what we can expect to see from XOMA moving forward. First and foremost, I’m incredibly impressed with the partners the company has been able to bring on board over the past few months. Bringing in some of the largest players on the biotechnology field will likely lead to incredible improvements in XOMA’s business as a whole. On top of that, I like what I’m seeing with regard to the pipeline the company currently has. At the moment, they have 3 preclinical candidates as well as one candidate in the end of Phase 1 and one candidate in the midst of Phase 2 testing. While I am a bit concerned about the company’s cash flow, I believe that the positive aspects of the stock largely outweigh anything negative there is to say.

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What Do You Think?

Where do you think XOMA is headed moving forward? Let us know your opinion in the comments below!

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Ambarella AMBA Stock News

Ambarella Inc (NASDAQ: AMBA)

Ambarella is having a rough time in the market today. The declines started in after-hours trading yesterday after the company reported earnings. While the previous quarter’s results were positive, investors seem to be concerned with guidance. Today, we’ll talk about what we saw from earnings, how AMBA is reacting to the news, and why I’m not in the least bit concerned about today’s declines. So, let’s get right to it.

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What We Saw From AMBA Earnings

As mentioned above, Ambarella reported its earnings for the fiscal fourth quarter of 2016. While earnings were overwhelmingly positive, AMBA is falling as the result of poor guidance. Here’s what we saw from the report:

  • Earnings Per Share – In the quarter, AMBA absolutely blew away expectations with regard to earnings per share. While analysts expected the company to produce earnings in the amount of $0.48 per share, the company actually reported earnings in the amount of $0.64 per share.
  • Revenue – Revenue also came in well ahead of expectations. During the fourth quarter, analysts expected the company to produce revenue in the amount $65 million, but the company actually produced revenue in the amount of $68 million.
  • Guidance – Unfortunately, weak guidance is concerning AMBA investors. AMBA expects to report revenue of $55 million to $57 million for the first quarter, below estimates of $62.44 million.

As you can see from the information above, the AMBA earnings report was relatively positive. Unfortunately however, guidance has led to fear. In a statement, Fermi Wang, CEO of Ambarella, had the following to say with regard to the results from the quarter:

During the fourth quarter we saw strong sales from professional IP security, automotive aftermarket, home monitoring and flying camera markets… This was largely offset, however, by a continued decline in the wearable sports market.”

How The Market Reacted To The News

As investors, we know that the news moves the market. Any time there is positive news with regard to a publicly-traded company, we can expect to see gains. Adversely, when negative news is released, we expect to see losses. While earnings were overwhelmingly positive, guidance was the key that led to fear. As a result, we’re currently seeing declines on the stock. Currently (10:04), AMBA is trading at $43.26 per share after a gain of $2.98 per share, or 6.44%, thus far today.

Why I’m Not Concerned About The Declines

While poor guidance has led to investor fears, and ultimately, declines in the value of AMBA, I have to say that I’m not concerned at all. In fact, I still have a relatively bullish opinion of what we can expect to see from the stock moving forward. Unfortunately at the moment, wearable camera sales are declining, and AMBA is largely looked at as a producer of chips for these cameras. However, AMBA computer chips are being used in so many other ways now. The company’s chips are being used in drones, infotainment systems, driverless car experiments, home security, and more. All in all, regardless of what happens in the wearable camera market, chances are that demand for AMBA products will climb! So, while we may see declines in the short term, I’m expecting to see long-run gains.

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What Do You Think?

Where do you think AMBA is headed moving forward? Let us know your opinion in the comments below!

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Thought Leader Discussions

Gevo, Inc. GEVO Stock News

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Gevo, Inc. (NASDAQ: GEVO) Before we get into this interview, I'd like to extend a special thanks to my friend Joey who both set up the...