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.
- OKLO – The $25 Stock That Hit $193 And Then Lost Most Of It
- Can Project Fresh Save The Wendy’s Company?
- How Low Can Shopify Stock Go?
- Nokia (NOK) Reset: Is the Infrastructure Giant Still Undervalued At $13?
- Is Universal Health Services Stock an Under-Analyzed Capital Compounder Opportunity?
- RadNet Earnings: AI Fuels Revenue Beat And Guidance Raise
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.
A Multi Asset Portfolio Beats Picking Stocks Alone
Markets move differently but a mix of assets smooths volatility. A multi asset portfolio keeps you invested and reduces the impact of sharp drops in any single area.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices