Ambarella Crushed Despite Q2 Beat

Ambarella Inc AMBA shares are trading lower by $11.00, or 19 percent, at $43.40 in Friday's session.

After the close on Thursday, the company reported a Q2 adjusted EPS beat of 4 cents along with just over a $1 million beat for sales. The company expects Q3 sales to be within the range of estimates of $88.9 million.

That beat wasn't enough to investors in the stock. After a lower open, it had a brief rally to $46.68 before continuing its move lower. The ensuing decline took the stock to $42.01, but has rebounded back into the $43.00 handle. That marks the lowest level for Ambarella since it bottomed in June 2016 at $40.53.