Ambarella, Inc.’s (NASDAQ:AMBA) 29% Share Price Surge Not Quite Adding Up
Ambarella, Inc. (NASDAQ:AMBA) shares have continued their recent momentum with a 29% gain in the last month alone. The last 30 days bring the annual gain to a very sharp 38%.
Since its price has surged higher, Ambarella may be sending strong sell signals at present with a price-to-sales (or “P/S”) ratio of 10.1x, when you consider almost half of the companies in the Semiconductor industry in the United States have P/S ratios under 4x and even P/S lower than 2x aren’t out of the ordinary. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.
