Diamonds and Dogs
July 24, 2014Diamond: Ambarella Inc. (AMBA)
Ambarella Inc. is on the way up today to $32.34, a 6.25% gain up $1.90 from yesterday's close. The digital video processor supplier is experiencing this surge as a result of its role as lone supplier of system chips to GoPro cameras, which is expected to hold its official public offering this coming Thursday. The initial offering from GoPro Inc. is expected to be roughly 18 million shares selling in the range of $21 to $24. Amberella is expected to benefit from this offering as well as Google's need for a digital video processor with their recent purchase of home security camera maker, Dropcam. Amberella is tipped to be high on Google's wish list for a reliable supplier. With an influx of powerful and valuable companies becoming reliant on Amberella's video processor services, the stock's prospects only look to keep getting better.
Dog: Web.com Group (WWWW)
Today's dog is the global domain registrar, Web.com Group. This was caused by the announcement that Google would be entering the domain registration industry, making Google a competitor of Web.com Group. This could harm outlooks for future growth for the company, and investors responded to the bad news. The stock price fell 21% by noon, reaching $27. Half of Web.com's revenue comes from domain registration, but now Google is competing for their customers, such as small business owners. Web.com's value could drop significantly, and B. Riley & Co. has already downgraded the company from a buy to a hold.
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