Ambarella's stock plunged 13.61% during Wednesday's intraday trading, reflecting investor concerns over the company's financial outlook and leadership stability.
The sharp decline followed the CFO's warning of a sequential revenue decline in Q4, with projected revenue between $97 million and $103 million. This guidance overshadowed stronger-than-expected Q3 results, where revenue of $108.45 million and adjusted EPS of $0.27 beat estimates.
Further compounding the sell-off was the unexpected resignation of Chief Technology Officer Leslie Kohn, a key figure in the company's technological direction. The dual impact of financial uncertainty and leadership changes rattled investors, triggering the steep drop.
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