Needham’s ‘sell’ call on Ambarella (NASDAQ:AMBA) following strong results is justified if investors believe the 25% weekly gain more than reflects its future valuations. The company reported revenue falling 10% in Q2 but issued a strong third-quarter outlook. Ambarella expects revenue of $63-$67 million, above the $55.4 million consensus estimate. Gross margin will come in at 56% - 58%.
Dollar Tree (NASDAQ:DLTR) earned a 'buy' call from UBS. The company reported GAAP EPS of $0.76 as revenue grew 3.8% Y/Y to $5.74 billion. Comparable sales grew by 2.4% during the quarter. Though higher freight costs hurt gross margins by 140bp to 28.7%, its revenue guidance is in-line with prior estimates.
Dell (NYSE:DELL) earned a few ‘buy’ upgrades after the company reported earnings that were $0.65 above consensus estimates. Dell earned $2.15 a share (non-GAAP) even as revenue grew just 1.4% Y/Y.
Tigress Financial called Intel (NASDAQ:INTC) a 'buy.' The company reported a Q2 beat but selling its modem division to Apple (NASDAQ:AAPL) will help the company turn its focus on its strength. Mobileye, autonomous driving, and the PC CPU market are areas of growth or sustained revenue for Intel. Intel stock trades at just 11 times earnings and yields a decent dividend of around 2.6%.
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