With Ambarella Stock Sliding, Have You Assessed The Risk?
Ambarella (AMBA) stock is down 18.8% in a day. The recent slide reflects CFO warnings of a sequential Q4 revenue decline in its automotive and IoT segments, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Ambarella stands today.
- Size: Ambarella is a $3.1 Bil company with $348 Mil in revenue currently trading at $73.89.
- Fundamentals: Last 12 month revenue growth of 57.9% and operating margin of -28.4%.
- Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.37
- Valuation: Ambarella stock is currently trading at P/E multiple of -35.5 and P/EBIT multiple of -31.8
- Has returned (median) -9.1% within a year following sharp dips since 2010. See AMBA Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Very High valuation – making the stock Unattractive. For details, see Buy or Sell AMBA Stock
That brings us to the key consideration for investors worried about this fall: how resilient is AMBA stock if markets turn south? This is where our downturn resilience framework comes in. Suppose AMBA stock falls another 20-30% to $52 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- AMBA stock fell 79.3% from a high of $216.84 on 8 December 2021 to $44.90 on 30 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $95.51 on 12 November 2025 , and currently trades at $73.89
| AMBA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -79.3% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- AMBA stock fell 48.4% from a high of $72.57 on 12 February 2020 to $37.46 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 24 November 2020
| AMBA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -48.4% | -33.9% |
| Time to Full Recovery | 253 days | 148 days |
2018 Correction
- AMBA stock fell 51.1% from a high of $65.05 on 26 May 2017 to $31.84 on 10 October 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 11 September 2019
| AMBA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -51.1% | -19.8% |
| Time to Full Recovery | 336 days | 120 days |
Feeling jittery about AMBA stock? Consider portfolio approach.
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